HARRISONBURG, VA (Rocktown Now) – The Harrisonburg Innovation Hub (HIH) building in Harrisonburg is seeing significant energy savings thanks to a loan program designed for energy efficiency upgrades. An $817,000 C-PACE loan financed through PACE Equity will contribute toward these reductions in further renovations of a building constructed in 1925. Exterior lighting, internal lighting controls and power, and HVAC systems are being replaced for energy savings of $2,416.00 annually. The building is being renovated into a multi-use facility featuring office and retail spaces. The annual energy savings is equivalent to that of five households’ electricity use in one year. The project will also create 8 jobs.

This historic building in downtown Harrisonburg, now open for business, is being transformed into a three-floor shared workspace offering a variety of office settings including conference rooms, focus rooms, and common areas. The building also features electric vehicle charging stations to help generate significant annual energy savings. HIH anticipates more than 150 businesses working from the building, with at least 300 members among them. The Innovation Hub Grand Opening Celebration was held February 27.

The Virginia PACE Authority oversees the C-PACE program in Virginia which funds a wide variety of building measures on commercial properties through competitively priced loans.

“The Innovation Hub is a great example of an older building being revitalized and providing mixed use for the City of Harrisonburg. This project demonstrates the flexibility of our program for successful results and is a double win for the property owner as well as for the City,” said Abby Johnson, Executive Director of the Virginia
PACE Authority in a news release.

Building improvements financed using C-PACE can be completed with minimal up-front, out-of-pocket costs to property owners and can generate positive cash flow upon completion. The results may include reduced energy or other operating costs, improved business profitability, increased property value and improved
resiliency to the real estate.

The PACE program finances energy and water efficiency, renewable energy, stormwater management, electric vehicle charging infrastructure, environmental remediation, resiliency, and indoor air and water quality projects.

“Harrisonburg Innovation Hub is the City’s first C-PACE project. Harrisonburg City Council adopted the C-PACE ordinance in October 2023 as a win-win scenario to provide our development community with a new financing tool and create an incentive for increased energy efficiency investments. HIH is transformative project that will enable Harrisonburg to help meet the needs of an ever-changing business ecosystem. We have been excited to partner with the HIH team since Day 1 and we look forward to tremendous success,” commented Brian Shull, Economic Development Director for Harrisonburg.

By passing ordinances for C-PACE, jurisdictions can use the VA C-PACE Program as an economic development tool for both new construction and rehabilitation of existing buildings. In addition to the City of Harrisonburg, the following cities and counties have joined Virginia C-PACE: Albemarle, Alexandria, Charlottesville, Chesapeake, Chesterfield, Fairfax County, Henrico, Hopewell, Loudoun, Martinsburg, Petersburg, Prince William, Richmond, Rockingham, Shenandoah, Virginia Beach, and Winchester. To participate, commercial lending institutions must be registered with the Program. The Program currently has twenty-three registered lenders.