PACE: Property Assessed Clean Energy

Energy efficiency improvements can pay for themselves in the long run. Financing can make the improvements immediately cash-flow positive, but only if the loan tenor can match the useful life of the equipment. This enables the payments to be low enough that the projected energy savings exceeds the payments.

PACE, which stands for Property Assessed Clean Energy, is a nation-wide program that makes long-term financing available for energy upgrades, repaid through an annual assessment added to your property tax bill. Though it is a national initiative, each state must create its own PACE program, and so there is some variety in the forms PACE can take. Texas passed legislation in June 2013 authorizing local governments to implement PACE programs. Yesterday the Houston City Council unanimously passed a Resolution of Intent to adopt PACE.

I have been working with PACE Houston, a private company that develops PACE projects by providing strategic advice to property owners. If you’re in the Houston area and are interested in help with PACE financing, you could contact me, or go to the contact page on the PACE Houston website.