What is PACE?
Property Assessed Clean Energy (PACE), is an innovative financing program that allows commercial and industrial property owners the opportunity to obtain low-cost, long-term loans for efficiency projects. (i.e. water conservation, energy efficiency improvements, and renewable retrofits). In 2013, the legislature created Chapter 399 of the Texas Local Government Code, which gives the local governments the authority to develop a PACE District, which works with private sector lenders and property owners to secure financing for qualified improvements using an assessment on the property. PACE financing eliminates upfront costs that typically inhibit energy efficiency investments and creates a positive return on investment from energy savings from day one. PACE is designed to enhance the value and efficiency of existing buildings, reduce energy demand, promote job growth and significantly save building owners on utility costs.
The PACE program encourages investment by industrial and commercial building owners, by providing 100% upfront financing for the cost of the improvement. PACE also allows the building owner to amortize the debt over the useful life of the improvement. Qualified improvements will reduce the building’s utility costs more than enough to cover the cost of repayment; meaning that the improvements demonstrate they will be cash-flow positive at the time of completion. This type of secured financing does not affect conventional lending sources and will not compete for capital with other building owner investment opportunities.
What is SPEER doing?
SPEER works with Keeping PACE in Texas and Texas PACE Authority in promoting the adoption of PACE districts throughout the state, by providing any necessary resources and information. SPEER is available to answer questions regarding the use of PACE as a financing program that local governments can offer to commercial building owners. If you are a local government looking to get started with PACE, or are a business or lender who knows of a good PACE project, please contact us for individual assistance to move forward.
Currently Adopted PACE Districts in Texas
El Paso County
City of Houston
City of Dallas
Fort Bend County
PACE financing is not currently available for residential customers within this region.