Montgomery County Launches Commercial PACE Program to Boost Energy-Efficient Real Estate Development

Montgomery County, TX has officially adopted the Commercial Property Assessed Clean Energy (C-PACE) program, joining a growing list of progressive Texas counties supporting sustainable development. This innovative initiative empowers commercial property owners to finance energy-efficient upgrades with no upfront cost, using private capital repaid through a long-term property tax assessment.

This strategic move is a game-changer for real estate investors, developers, and property managers looking to enhance building performance while reducing operating expenses.

💡 What Is the C-PACE Program?

C-PACE (Commercial Property Assessed Clean Energy) financing allows commercial, industrial, and certain multi-family property owners to access private capital for upgrades that improve energy and water efficiency, as well as building resiliency. Eligible improvements include:

• High-efficiency HVAC systems
• Solar panel installations
• Water conservation and plumbing upgrades
• LED lighting retrofits
• Energy-efficient windows and insulation
• Roof replacements with energy-saving materials

Unlike conventional loans, C-PACE financing is tied to the property—not the individual—and is repaid through a voluntary property tax assessment. This structure transfers repayment obligations to future owners if the property is sold.

🤝 Montgomery County Partners with Lone Star PACE

To ensure proper administration and compliance, Montgomery County has partnered with Lone Star PACE, a nonprofit organization that manages C-PACE programs across Texas. According to Lone Star PACE President Lee McCormick, the program poses “no risk and no liability to the county”, as all funding comes from private investors.

This collaboration opens the door for commercial building owners in Conroe, The Woodlands, Magnolia, Willis, and surrounding areas to begin implementing impactful energy improvements that deliver both environmental and economic benefits.

🏗️ Initial C-PACE Projects in Montgomery County

Three commercial projects are already scheduled to utilize C-PACE financing in Montgomery County:

• A medical facility in Conroe
• A retail strip center near Lake Conroe
• A multifamily housing development in Magnolia

These projects will integrate energy-efficient building upgrades, reducing long-term utility costs while boosting the value and marketability of the properties.

📈 Why C-PACE Financing Matters for Commercial Real Estate

C-PACE is more than an energy initiative—it’s a powerful commercial real estate financing tool. Here’s how it benefits the Montgomery County market:

• Increases tenant appeal: Modern, efficient systems improve indoor comfort and reduce utility expenses.
• Boosts property values: Energy upgrades enhance long-term asset value.
• Reduces capital burden: Owners can implement improvements without upfront capital, preserving liquidity.
• Encourages sustainable development: Supports Texas’ clean energy goals while revitalizing aging infrastructure.

For investors and developers, C-PACE is a strategic advantage, particularly in high-growth areas like Conroe, The Woodlands, Spring, and Magnolia, where commercial demand and environmental expectations are rising.

📍 Interested in C-PACE Financing for Your Property?

If you own or are planning to invest in commercial property in Montgomery County, now is the time to explore your eligibility for C-PACE financing. Whether you're upgrading an office building, retrofitting a retail center, or constructing a new multifamily development, C-PACE can support your goals sustainably and cost-effectively.

Source (paywall): https://www.houstonchronicle.com/news/houston-texas/trending/article/montgomery-county-pace-energy-20323487.php

For More Information: https://www.texaspaceauthority.org/home/service-areas/montgomery-county/