Climate Action Plan Target 8

Current Status


Activity In 2022

No PACE projects were closed in Houston in 2022.

Beyond 2021

Future goals are being assessed.

How Do PACE Projects Improve Houston's Buildings?

Access to capital and information are key for building owners to successfully implement energy-efficiency upgrades and overcome market barriers. The availability of diverse energy-efficiency financing mechanisms is fundamental to achieving broad-scale market investment throughout all parts of our community and is a crucial component to the success of the city’s climate goals. Since the City of Houston is in a deregulated electric market, it is challenging for the city to incentivize or subsidize energy efficiency projects. Instead, several energy efficiency and rebate programs, including weatherization assistance programs, are offered by CenterPoint Energy as well as retail electric providers (REPs). These programs are required by the State of Texas to ensure utilities provide reliable power during periods of peak demand. To truly optimize Houston’s building stock, however, more programs are needed. By installing building materials that make homes and businesses more comfortable and energy efficient, weatherization helps reduce energy burdens and creates more equitable and resilient communities. Adopted in 2015 as an economic development tool, Houston’s commercial Property Assessed Clean Energy (PACE) Program incentivizes private building owners to upgrade facility infrastructure with little or no upfront capital. Eligible commercial, multifamily, and industrial property owners can decrease operating costs and use the savings to pay for energy efficiency, water conservation, distributed energy, and resilience upgrades. Owners gain access to private, affordable, and long-term—10-20 year — financing that is not available through traditional funding avenues. In 2020, four projects were completed in Houston, resulting in more than $25 million in investment and saving 5,541 metric tonnes of CO2e emissions each year. By 2021, the number of PACE projects had doubled, meeting the initial target. The Mayor’s Office of Resilience and Sustainability is evaluating the targets to define future action. In the Fall of 2021, Houston City Council approved the renewal of the three-year contract partnership with the Texas PACE Authority.


2022 Data Source