- Texas PACE Program
Texas PACE Program
Lower Operating Costs for Commercial, Industrial, Agricultural, Nonprofit and Multi-Family Properties in Boerne
The Texas Property Assessed Clean Energy (TX-PACE) program saves Texas companies and property owners money on their utility bills by facilitating the use of private capital to finance water conservation, energy efficiency, resiliency, and distributed generation projects. The program is available to commercial, industrial, agricultural, nonprofit, and multifamily properties (5 or more units).
TX-PACE incentivizes Texas property owners to upgrade facility infrastructure with little or no capital outlay. The program enables owners to lower operating costs and use the savings to pay for eligible projects through private, affordable, long-term financing (typically 10-20 years) not available through traditional funding avenues. Since the assessment is tied to the property and transfers upon sale, TX-PACE makes it easier for owners to invest in facility upgrades and modernization, with little or no upfront capital.
TX-PACE is approved by the state legislature and was established in the City of Boerne in March 2020 by City Council, making the program available to business owners.
How It Works
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.
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 but are not limited to:
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