Property Assessed Clean Energy (TX-PACE) is a proven financial tool that incentivizes Texas’ property owners to upgrade facility infrastructure with little or no capital outlay. Approved by State legislation and established by your local governments, TX-PACE programs enable owners to lower their operating costs and use the savings to pay for eligible water conservation, energy efficiency, resiliency, and distributed generation projects. Owners gain access to private, affordable, long-term (typically 10-20 years) financing that is not available through traditional funding avenues.
PACE is a voluntary program that can be used for the following property types.
Commercial property includes nonprofit, institutional, hospitality and retail
Industrial property includes manufacturing and agricultural
Multifamily Residential Property
Multifamily residential property includes properties with 5 or more units
PACE financing may be used to pay for permanent improvements to the property that are intended to decrease water or energy consumption or demand.
Typical Examples Include:
Chillers, boilers, and furnaces • HVAC, BMS, BAS, EMS controls • Lighting • Water heating systems • Energy management systems and controls • Roofing • Windows • Doors • Insulation • Elevator modernization • Pool equipment • Distributed generation systems • Heat recovery and steam traps • Solar panels • Wind turbines • Water management systems and controls • Irrigation equipment • Rainwater collection systems • Toilets • Faucets • Greywater systems… and more!
*This is not an exclusive list of qualified improvements. Send us an email at firstname.lastname@example.org with any questions about qualified improvements.
Are you a property owner that wants to make property upgrades while remaining budget neutral?
Are you a developer that wants to take advantage of a low-cost, long-term replacement to expensive equity partner financing?
Are you a service or capital provider who wants to offer more services to customers?
Are you a local government interested in creating jobs and improving the environment?
TX-PACE is a flexible, voluntary program that is available in communities across Texas.
TX-PACE programs are being launched all over the state. Check here to see if its available in your region.
Local governments across the State are taking advantage of the Texas PACE statute and establishing programs to further provide quality and valuable services to their constituencies, stakeholders, and taxpayers. This unique program enables property owners to overcome traditional market barriers, such as extended payback periods and lack of capital, that discourage investment in energy efficiency and water conservation improvements. TX-PACE provides a new source of property-secured financing for energy efficiency and water conservation retrofits that does not affect conventional lending sources and does not compete for capital with other investment opportunities.
The widespread benefits impact the property owner, tenants, environment, and community, resulting in lower operating costs, more local jobs, and a concerted effort to conserve energy and water.
Owners choose a private sector capital provider and voluntarily request that the local government place a senior lien on the property for the total cost of the project. The owner commits to the local government that he/she will pay the TX-PACE assessment installments.
TX-PACE is not a personal or business loan. It is a voluntary land-secured assessment that is paid off over time. The energy and/or water savings are structured to exceed the cost of the assessment, resulting in projects that are cash flow positive. As the assessment is tied to the property, the repayment obligation transfers to the next owner if the property is sold.
The Texas PACE Authority has partnered with the US Green Building Council, Texas Chapter, in providing a list of TX-PACE service providers.
The Texas Green Building Marketplace lists experienced companies related to TX-PACE and the green industry. It also provides a list of networking and educational events as well as Green Job opportunities. Click on the link below to access that website:
DISCLAIMER: Texas PACE Authority neither endorses nor recommends any particular service provider, including those found in the Texas Green Building Marketplace. If you are a service provider and would like to be included in this directory, please contact USGBC, Texas Chapter at 512-470-9923 or email@example.com
PACE in Texas is open-market, and consequently a wide range of parties can make PACE loans. Eligible third-party lenders may include:
- Any federally insured depository institution such as a bank, savings bank, savings and loan association and federal or state credit union;
- Any insurance company authorized to conduct business in one or more states;
- Any registered investment company, registered business development company, or a Small Business Administration small business investment company;
- Any publicly traded entity; or
- Any private entity that:
- Has a minimum net worth of $5 million;
- Has at least three years’ experience in business or industrial lending or commercial real estate lending (including multifamily lending), or has a lending officer that has at least three years’ experience in business or industrial lending or commercial real estate lending; and
- Can provide independent certification as to availability of funds.
All lenders must have the ability to carry out, either directly or through a servicer, the bookkeeping and customer service work necessary to manage the assessment accounts.
Note that the Texas PACE Authority neither recommends nor endorses any particular PACE Service providers. This directory is provided solely for convenience in consolidating a list of PACE service providers. If you would like to be listed as a PACE lender, please contact Texas PACE Authority