As we reflect on 2025, we are thrilled to report that Commercial Property Assessed Clean Energy (C-PACE) gained incredible momentum across Texas and the U.S. Interest in the program continued to rise as more property owners, lenders and local governments recognized the importance of clean energy financing in advancing sustainability and driving innovation in commercial real estate.
Lone Star PACE administered $86.6 million in C-PACE financing across eight projects in 2025, each making a meaningful impact on communities through the promotion of energy efficiency, water conservation and/or renewable energy. Together, the projects are expected to cut energy use by 3 million kWh and water use by 9,835 kGals, the equivalent of powering 227 Texas homes for a year and saving more than 74 million bottles of water.
“The projects we facilitated last year proved that C-PACE is becoming standard practice rather than an alternative,” Lone Star PACE President Lee McCormick said. “It’s encouraging to see more communities recognize its value, whether that’s through energy savings, property enhancements or the broader benefit to the environment.”
Expanding Reach and Policy Improvements
The C-PACE movement attracted more communities in 2025, with LSP tapped to lead programs in five new jurisdictions, including three counties and two cities. We also took on the role of co-administrator for the North Central Texas Council of Governments’ inaugural C-PACE program, a move that broadens access to sustainable financing across some of the state’s fastest-growing communities.
On the policy front, the Loan-to-Value (LTV) ratio for C-PACE projects in Texas increased from 25% to 35%, aligning the state with national standards and giving developers more flexibility as they plan capital stacks for future projects.
“Staying in sync with both our partners and industry standards is key,” LSP COO Glenn said. “We spent a lot of time in 2025 listening — at panel sessions, events, and one-on-one meetings — to ensure our approach supports the unique needs of each jurisdiction and project sponsor.”
Standing Out with Awards
LSP is proud to have been involved in several projects recognized for driving sustainability and economic development in Texas.
ViVa Center, a future colocation data center in Houston, brought home Commercial Observer’s Sustainability Project of the Year and REDnews’ Best Green/LEED Development of the Year, while HALL Arts Hotel received the Dallas Business Journal’s Most Creative Financing Award. These awards highlight not only the creativity of each deal but also how C-PACE can be part of ambitious, high-impact projects.
Looking ahead to 2026, our team remains focused on building relationships, sharing knowledge and supporting the continued growth and acceptance of C-PACE across our great state. We appreciate the trust placed in us and look forward to seeing what new challenges and opportunities next year will bring.