The TX-PACE project process helps commercial property owners navigate financing for eligible energy efficiency, water conservation, resiliency, and renewable energy improvements. From determining your property's eligibility to securing financing and closing, each step is designed to help you move your project forward. Explore the process below to understand what to expect and how Texas PACE Authority supports you along the way.
Step 1: Determine Project Eligibility
Start by confirming that your property and proposed improvements qualify for TX-PACE financing. Eligibility depends on factors such as property type, location, and the types of energy or water improvements you plan to make. Use our Eligibility Check Tool to get started.
Step 2: Determine Project Scope
Identify the improvements you want to finance and work with qualified professionals to develop your project scope. Eligible improvements may include HVAC systems, lighting, building controls, water conservation measures, and renewable energy systems. Consider project costs, anticipated savings, and long-term property needs.
Step 3: Select a PACE Lender
Choose a qualified PACE lender to provide financing for your project. Texas operates an open-market PACE program, allowing property owners to work with eligible private capital providers. Compare financing options and terms to find a lender that meets your project's needs.
Step 4: Select Service Providers
Assemble your project team, including contractors, engineers, and other qualified service providers. These professionals help design your improvements, estimate costs and savings, and prepare the technical documentation needed for TX-PACE financing.
Step 5: Prepare Application
Work with your project team and lender to complete the TX-PACE application. You'll need to provide property information, project details, financial documentation, and supporting technical analyses. Texas PACE Authority reviews the application to verify that your project meets program requirements.
Step 6: Obtain Mortgagee Consent (if applicable)
If your property has an existing mortgage, you'll need written consent from your mortgage lender before proceeding with TX-PACE financing. This step ensures your lender understands the proposed assessment and its relationship to the existing mortgage.
Step 7: Engage ITPR for Project Verification
An Independent Third-Party Reviewer evaluates your project's technical analysis and projected energy or water savings prior to construction. The ITPR verifies that the proposed improvements meet TX-PACE technical standards and completes the required pre-construction verification documentation.
- ITPR-Pre-Construction Verification Certificate Template
- TX-PACE ITPR Workbook Template (Texas PACE Standards Alliance)
Step 8: Close on PACE Financing
Once your application has been approved and all requirements are satisfied, you'll finalize the financing and assessment agreements. At closing, the TX-PACE assessment is established, and the required legal documents are executed to authorize project financing.
Step 9: Install Upgrades
With financing secured, your contractors can begin installing the approved improvements. Whether you're upgrading HVAC equipment, improving water efficiency, or adding renewable energy systems, installation should follow the approved project scope and technical requirements.
Step 10: Verify Installation
After installation, your Independent Third-Party Reviewer confirms that the improvements were installed correctly and are operating as intended. The reviewer completes the required post-construction verification documentation, bringing your TX-PACE project process to completion.
