City of Fredericksburg, Texas PACE Program

The City of Fredericksburg City Council approved a Resolution of Intent at the December 2, 2019 City Council meeting to establish a City of Fredericksburg Property Assessed Clean Energy (PACE) Program.  This program provides financial incentives for large projects that incorporate energy saving improvements as part of their projects.  The City is a conduit for these incentives and will not provide any financing or have any financial obligations.  

Property Assessed Clean Energy (TX-PACE) is a proven financial tool that incentivizes Texas’ property owners to upgrade facility infrastructure with little or no capital outlay.  Approved by State legislation and established by local governments, TX-PACE programs enable owners to lower their operating costs and use the savings to pay for eligible water conservation, energy efficiency, resiliency, and distributed generation projects.  Owners gain access to private, affordable, long-term (typically 10-20 years) financing that is not available through traditional funding avenues.


PACE is a voluntary program that can be used for Commercial property owners, Industrial property owners, and Multi-family Residential real property with five or more dwelling units.  The boundaries of the entire geographic area within the City's jurisdiction and Extra Territorial Jurisdiction (ETJ) are the boundaries of the region where PACE financing and assessments can occur.


PACE financing may be used to pay for permanent improvements to the property that are intended to decrease water or energy consumption or demand.

Typical Examples Include:
Chillers, boilers, and furnaces • HVAC, BMS, BAS, EMS controls • Lighting • Water heating systems • Energy management systems and controls • Roofing • Windows • Doors • Insulation • Elevator modernization • Pool equipment • Distributed generation systems • Heat recovery and steam traps • Solar panels • Wind turbines • Water management systems and controls • Irrigation equipment • Rainwater collection systems • Toilets • Faucets • Greywater systems… and more!

*This is not an exclusive list of qualified improvements. Send us an email at with any questions about qualified improvements.


TX-PACE programs are being launched all over the state. Check here to see if its available in your region.


Local governments across the State are taking advantage of the Texas PACE statute and establishing programs to further provide quality and valuable services to their constituencies, stakeholders, and taxpayers. This unique program enables property owners to overcome traditional market barriers, such as extended payback periods and lack of capital, that discourage investment in energy efficiency and water conservation improvements. TX-PACE provides a new source of property-secured financing for energy efficiency and water conservation retrofits that does not affect conventional lending sources and does not compete for capital with other investment opportunities.

The widespread benefits impact the property owner, tenants, environment, and community, resulting in lower operating costs, more local jobs, and a concerted effort to conserve energy and water.


Owners choose a private sector capital provider and voluntarily request that the local government place a senior lien on the property for the total cost of the project. The owner commits to the local government that he/she will pay the TX-PACE assessment installments.

TX-PACE is not a personal or business loan. It is a voluntary land-secured assessment that is paid off over time. The energy and/or water savings are structured to exceed the cost of the assessment, resulting in projects that are cash flow positive. As the assessment is tied to the property, the repayment obligation transfers to the next owner if the property is sold.


For additional information about TX-PACE, visit their website at