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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.
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.
Establish objectives, targets, and timeframes for your program to support local contractors and the type and quality of service they provide to help meet your program’s goals.
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.
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.
Improve your program’s efficiency and effectiveness through regular information collection, assessment, decision-making, adaptation, and communication.
Research and analyze the specific barriers, needs, and opportunities for a residential energy efficiency program in your community.
Establish program goals and objectives to clarify what you want your program to achieve and to guide program design and implementation over time.
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.
Decide on priority target audience segments, messages, and incentives that will motivate customers.
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.
This U.S. Environmental Protection Agency resource is intended to help state and local governments design finance programs for their jurisdiction. It describes financing program options, key components of these programs, and factors to consider as they make decisions about getting started or updating their programs.
This market assessment for the Alabama Energy Revolving Loan Fund identifies the customers and potential demand for an energy efficiency upgrade financing program.
A sample request for proposals from Bainbridge Island, Washington, related to establishing a revolving loan fund and loan loss reserve.
This report provides information for states intending to set up a new revolving loan fund for state energy programs.
A sample request for proposals from Washington state to develop an energy efficiency credit enhancement grant program.
Focus on the continuous improvement of your financing activities by tracking and evaluating data, responding to feedback, and modifying strategies when needed.