In order to overcome lenders’ concerns over the risk associated with energy efficiency loans, many Better Buildings Neighborhood Program partners offered credit enhancements to lenders (e.g., loan loss reserve funds) to attract lender participation and to mitigate lender losses in the event of loan...

Historically, energy efficiency financing have required two sources of funding: credit enhancement funds to mitigate risk and support attractive financing, and senior capital to fund the majority of the loan principal. Some residential energy efficiency programs have successfully assembled loan...