Energizing Properties with TX-PACE: A Comprehensive Guide

Understanding TX-PACE

Property Assessed Clean Energy (TX-PACE) is a financial program designed to help Texas property owners upgrade their facilities' infrastructure with minimal or no capital outlay. Approved by state legislation and established by local governments, TX-PACE provides access to private, affordable, and long-term financing for projects to improve water conservation, energy efficiency, resiliency, and distributed generation.

What is TX-PACE?

TX-PACE is a voluntary program that enables property owners to lower operating costs and use the savings to pay for eligible upgrades. This financial tool offers long-term financing options, typically 20-30 years, not available through traditional funding avenues.

Eligible Properties

TX-PACE can be utilized for various property types, including:

• Commercial Real Property: Includes non-profit real property such as private schools, medical facilities, and churches.
• Industrial Real Property: Includes privately owned agricultural real property.
• Multifamily Residential Real Property: Includes residential real property with five or more dwelling units.

How Does TX-PACE Work?

Step-by-Step Process:

1. Assessment: Property owners identify potential projects to decrease water or energy consumption.
2. Application: Apply to the TX-PACE program detailing the intended upgrades.
3. Approval: Once approved, owners gain access to private-sector capital providers for financing.
4. Implementation: Carry out the approved projects, such as installing new chillers, boilers, HVAC systems, lighting, solar panels, and water management systems.
5. Repayment: Repayment is made through a voluntary land-secured assessment, structured to ensure energy and water savings exceed the cost, resulting in positive cash flow.

Visit the Quick Start Guide for clarity on the process.

Typical Projects Funded by TX-PACE

• Chillers, boilers, and furnaces
• HVAC, BMS, BAS, EMS controls
• Lighting and water heating systems
• Energy management systems and controls
• Roofing, windows, and doors
• Insulation and elevator modernization
• Solar panels and wind turbines
• Water management systems and irrigation equipment.

Benefits of TX-PACE

For Property Owners

TX-PACE helps property owners overcome traditional barriers like extended payback periods and a lack of capital. Property owners can invest in energy efficiency and water conservation retrofits without affecting conventional lending sources by providing a new source of property-secured financing.

For the Community

The widespread benefits of TX-PACE include:

• Lower Operating Costs: Reduced energy and water bills for property owners.
• Job Creation: Increased local employment opportunities through project implementation.
• Environmental Impact: Enhanced efforts to conserve energy and water, contributing to a healthier environment.

For Local Governments

Establishing TX-PACE programs benefits local governments by allowing them to provide quality and valuable services to their constituents, stakeholders, and taxpayers. The program also aligns with efforts to create jobs and improve the environment.

Why Choose TX-PACE?

TX-PACE is not a personal or business loan but a voluntary, land-secured assessment paid off over time. The energy and/or water savings are structured to exceed the cost of the assessment, ensuring projects are cash flow positive. Moreover, if the property is sold, the repayment obligation is transferred to the next owner, maintaining the benefits and responsibilities tied to the property.

Getting Started in Henderson County

For property owners, developers, service or capital providers, and local governments in Henderson County, including Gun Barrel, TX-PACE offers a unique opportunity to make impactful property upgrades. For more information, visit the TX-PACE Henderson County page.

Embrace the benefits of TX-PACE and transform your property while contributing to a sustainable future for Gun Barrel and beyond.