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PACE District Established in Houston

Would you like to make improvements to your commercial property for $0 down that generate positive cash flow in the first year?

This scenario may seem too good to be true. However, it can be realized with a Solar Power System under the new PACE Houston Ordinance that was passed in November of 2015.

PACE (Property Assessed Clean Energy) is a government policy classifying energy saving upgrades as a public benefit and allowing those upgrades to be funded through a public benefit assessment charge similar to a sewer or water assessment. PACE funding is secured by the benefited property and repaid through the property tax bill over the life of the upgrade. The Houston PACE District includes all areas within the City of Houston and its extraterritorial jurisdiction.

More Details on PACE Financing

  • Cash Flow Positive: The utility savings provided by the building improvements are greater than the cost required to finance them. $0 down insures positive cash flow from year one.

  • PACE financed projects remain eligible for the 30% Federal Investment Tax Credit: This credit may be spread over several years if desired.

  • The Loan Stays with the Improvements: An owner does not have to pay off the loan even if the owner later decides to sell the property. The loan assessment stays with the property (and the improvements).

  • PACE financed Improvements remain eligible for depreciation.

  • The Tenants who benefit from Lower Utility Bills Pay the Cost: Since a PACE loan repayment is actually a tax assessment, the cost of the improvements can most often be passed on to the tenants who in turn benefit from lower utility costs.

  • Increased Property Values: Building upgrades boost net operating income and help attract and maintain tenants.

  • Only the Assessment Due is Ahead of Existing Lenders: While the property receives the full value of the investment and the future cash flows, only the assessments due are ahead of the existing lender’s position. Furthermore, the assessment loan cannot be accelerated.

  • Loan Accessibility: Property owners with non-investment grade credit can obtain PACE financing.

  • Space City Solar is trained to help property owners take full advantage of the PACE Program. We are a Texas Green Building Marketplace Listed Vendor. Space City Solar and our PACE partners will take you through every step of the PACE process.