Resilience & Sustainability Office

Houston Property Assessed Clean Energy (PACE) Program

Innovative Financing Tool Helps Property Owners Cut Costs, Increase Efficiency

The City of Houston’s commercial Property Assessed Clean Energy or PACE program provides an additional tool for Houston property owners to finance energy efficiency, renewable energy, and water conservation projects.

PACE is a nationally-renowned, voluntary financing program that allows owners of commercial, industrial, and multi-family residential properties (with five or more dwelling units) to obtain low-cost, long-term loans for water conservation, energy-efficiency improvements, and distributed generation.

In exchange for funds provided by a private lender to pay for the improvements, the property owner voluntarily requests that the local government place an assessment secured with a senior lien on the property until the assessment is paid in full. As PACE assessment payments are generally offset by the project’s utility cost savings and the term of PACE assessments may extend up to the projected life of the improvement, improvements financed through a PACE program may generate positive cash flow upon completion without up-front, out-of-pocket costs to the property owner.

The State of Texas authorized municipal and county PACE Programs in 2013. Houston City Council adopted an ordinance establishing a Houston PACE program on November 4, 2015. As of February 1, 2017, PACE programs are available in ten Texas counties (Brazos, Cameron, El Paso, Fort Bend, Hays, Hidalgo, Nueces, Travis, Williamson, and Willacy) and two cities (Houston and Dallas). 

Contact PACE:
To learn more about Houston’s PACE program, submit a PACE application, or contact the PACE Program Administrator, please visit

PACE Documents:

  • PACE Ordinance (.pdf, authorized by Houston City Council on February 22, 2017)
  • PACE Ordinance (.pdf, authorized by Houston City Council on November 4, 2015)
  • PACE Report (.pdf, authorized by Houston City Council on November 4, 2015)

Upcoming PACE Hearings:

PACE News: