First, you need to decide what energy/water efficiency measures you want to install. Generally, a PACE project must demonstrably reduce your energy/water consumption or generate distributed energy. This includes things such as:

• Insulation
• High-efficiency windows or doors
• Automated energy control systems
• HVAC modification or replacement
• Caulking, weather-stripping or air sealing
• Light fixture modifications
• Water use efficiency improvements
• Energy- or water-efficient manufacturing processes and/or equipment
• Solar panels
• Solar hot water
• Gray water reuse
• Rainwater collection system

We encourage you to approach improvements on a holistic basis to gain maximum efficiency using PACE. Consider upgrading your facility's envelope first to get maximum savings from your retrofit.

Once you have a project in mind, take our Eligibility Assessment to see if your project might qualify.

You will next need to find a contractor to help you with the design and installation of the project. You may use any contractor, and we encourage you to check qualifications, reputation, etc., and to choose wisely.

You will next need to find a lender or capital provider to finance your PACE loan. While you may select any lender of your choosing, lenders should meet the following qualifications:

Eligible third-party lenders may include:

• Any federally insured depository institution such as a bank, savings bank, savings and loan association and federal or state credit union;
• Any insurance company authorized to conduct business in one or more states;
• Any registered investment company, registered business development company, or a Small Business Administration small business investment company;
• Any publicly traded entity; or
• Any private entity that:
• Has a minimum net worth of $5 million;
• Has at least three years experience in business or industrial lending or commercial real estate lending (including multifamily lending), or has a lending officer that has at least three years experience in business or industrial lending or commercial real estate lending; and
• Can provide independent certification as to availability of funds.
• Have the ability to carry out, either directly or through a servicer, the book keeping and customer service work necessary to manage the assessment accounts.

If your property has a mortgage, you will need to get existing mortgagee consent before a PACE assessment can be applied. For help with obtaining mortgagee consent, see the following guide:

Your project will have to undergo an energy assessment as part of a PACE application. We follow the PACE in a Box Technical standards manual standards, which can be found here:

As part of this technical analysis, you will have to:

1. Establish a Baseline of your energy/water use
2. Calculate savings from the installation of your project.

The key metric in a PACE application is the Savings to Investment Ratio (SIR). In most cases, you must demonstrate an SIR > 1, meaning that your project will pay for itself when taken over the life of the assessment. See the Technical Standards Manual for more information.

The energy/water savings analysis for your project will have to be confirmed by an Independent Third Party Engineer (ITPR). The ITPR must be a licensed PE in Texas and sign a statement confirming that he or she has no financial interest in your project. In addition, the ITPR should have at least one of the following certifications:

• American Society of Heating, Refrigeration, and Air-Conditioning Engineers (ASHRAE)
  • Building Energy Assessment Professional (BEAP)
  • Building Energy Modeling Professional
• Association of Energy Engineers (AEE)
  • Certified Energy Manager (CEM)
  • Certified Measurement and Verification Professional (CMVP)
  • Certified Energy Auditor (CEA)
• Building Commissioning Association
  • Certified Commissioning Professional

Closing on a PACE project will require several legal contracts. There will be required a legal contract between the property owner and the county, between the lender and the county. These contracts were developed through the PACE in a Box model which incorporated input from all parties including county staff, lenders, property owners, and contractors.

The Lender Contract†can be found here:

The Owner Contract can be found here:

The end result of a PACE project is a senior lien that will be filed with the local tax assessor/collector.

The form for this lien can be found here: