U.S. Department of Energy Energy Efficiency & Renewable Energy U.S. Department of Energy Energy Efficiency & Renewable Energy

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Author: U.S. Department of Energy
Publication Date: 2015

This website provides an overview of financing as it pertains to state, local, and tribal governments who are designing and implementing clean energy financing programs. Residential financing tools include residential PACE (R-PACE), on-bill financing and repayment, loan loss reserves and other credit enhancements, revolving loan funds, and energy efficient mortgages.

Author: Jeff Deason, Goldman School of Public Policy , UC Berkeley
Publication Date: 2015

This paper investigates the credit enhancement value of NYSERDA's on-bill energy efficiency financing program relative to its similar conventional unsecured loan program. In the raw data, while both loan pools perform well relative to credit card lending, the on-bill loans default more often than the unsecured loans. This paper shows that this result persists: on-bill loans default more often, and this finding is not sensitive to model specification. This paper also shows that NYSERDA's alternate underwriting mechanism based on mortgage and utility bill repayment history performs well, and that projected dollar savings from the installed projects do not significantly influence loan performance.

Author: Arkansas Economic Development Commission
Publication Date: 2014

Presents the loan loss reserve guidelines for the Arkansas Residential Energy Efficiency Loan Loss Reserve Program.

Author: State and Local Energy Efficiency Action Network
Publication Date: 2014

This report provides an overview of credit enhancements available, such as loan loss reserves, loan guarantees, debt service reserve funds, and subordinated capital. It also discusses key issues related to credit enhancement, examples of how others have successfully implemented credit enhancements as part of their energy efficiency financing programs, and additional information on existing resources that provide further information on credit enhancement design and implementation.

Author: Kevin Moyer, Toledo Port Authority; Ben Taube, Ygrene Energy Fund; Greg Leventis,; Lawrence Berkeley National Laboratory
Publication Date: 2014

This presentation covers lesson learned for PACE from the Toledo Port Authority, innovative real estate finance solutions from the Ygrene Energy Fund, and financing energy improvements on utility bills.

Launch your financing activities in coordination with other program components.

Develop the procurement, outreach, and loan support resources required to perform your financing activities.

Establish program goals and objectives to clarify what you want your program to achieve and to guide program design and implementation over time.

Author: University of North Carolina Environmental Finance Center
Publication Date: 2013

This database (in development) contains information about existing energy efficiency loan programs in the United States. For each loan program the following data is presented: financing mechanism (e.g., credit enhancement, on-bill financing), market (e.g., city, state), sector (e.g., residential single family, residential multi-family), and program sponsorship (e.g., DOE programs, ARRA, private lenders).

Determine how your target audience currently funds energy efficiency services, to what extent upfront cost is a barrier, and whether improvements to their financing options would increase the uptake of energy efficiency measures.

Establish an evaluation plan that will allow you to determine how your financing activities are impacting the market.

Develop a plan to implement your financing activities, with defined roles for financial institution partners, contractors, customers, and your program.

Identify and partner with financial institutions that can provide capital, underwriting, and other functions to enable your customers to access financing.

Determine if enhancements to existing financing products or the development of new products are necessary to allow you to achieve your goals and objectives.

Ensure that your program’s customers will have access to affordable financing, so they can pay for the services you offer.

Author: Michigan Saves
Publication Date: 2013

This loan loss reserve fund agreement sets the terms and conditions of the loan loss reserve fund between Michigan Saves and partnering lenders.

Decide on priority target audience segments, messages, and incentives that will motivate customers.

Author: Lawrence Berkeley National Laboratory
Publication Date: 2012

Highlights the EcoHouse Project Loan Program, which provides fixed interest rate loans as a tool for enabling energy improvements among households that are otherwise unlikely to be able to access affordable financing at market rates.

Author: World Resources Institute
Publication Date: 2011

Outlines five public-private financing mechanism options for energy efficiency upgrades programs, including on-bill financing, PACE financing, and loan loss reserve funds.

Author: Energy Upgrade California
Publication Date: 2011

Example loan loss reserve fund agreement.

Author: Energy Upgrade California
Publication Date: 2011

Example loan loss reserve fund agreement.

Author: U.S. Department of Energy
Publication Date: 2010

A template competitive procurement procedure to award loan loss reserve funds to a financial institution partner.

Author: U.S. Department of Energy
Publication Date: 2010

A template agreement demonstrating how to address the deposit and use of loan loss reserve funds.

Loan Loss Reserves: Lessons from the Field
Author: U.S. Department of Energy
Publication Date: 2010
Presentation, Media, Transcript

This webcast highlights lessons learned from programs that have used loan loss reserve funds.

Author: City of Bainbridge Island, Washington
Publication Date: 2010

A sample request for proposals from Bainbridge Island, Washington, related to establishing a revolving loan fund and loan loss reserve.

Author: City of Independence, Missouri
Publication Date: 2010

A sample competitive procurement procedure to award loan loss reserve funds to a financial institution partner.

Author: State of Washington Department of Commerce
Publication Date: 2009

A sample request for proposals from Washington state to develop an energy efficiency credit enhancement grant program.