A rural electric cooperative in North Carolina is one of the first in the country to receive funds from a new United States Department of Agriculture (USDA) on-bill finance program that will help customers improve energy efficiency, lower utility bills, and reduce carbon pollution. Roanoke Electric Membership Cooperative, which serves 14,ooo rural customers, is in my home state.
Roanoke Electric’s membership base is similar to other economically distressed rural areas, which have a growing elderly population and residents with homes that need energy-saving upgrades.
The cooperative diligently promotes energy efficiency, yet there are still customers with utility bills that are higher than their mortgage payments some months. Securing upfront capital to finance home improvements can be challenging. Read More
Source: Chuck Abbe
Four years ago, I joined Environmental Defense Fund to work on climate policy as I believe that the issue is one of the most critical challenges of our era. I felt that my background working on Wall Street could be put to good use in crafting finance policies that help fight climate change. I chose EDF because they are the environmental organization that best understands how to use market mechanisms to deliver environmental solutions.
Tomorrow will be my last day at EDF, but I am not leaving because of any disappointment with the organization or any decline in my commitment on climate issues. At this point in time, new market mechanisms to finance clean energy are in place. The biggest contribution I can make is to switch to the private sector and demonstrate how well these mechanisms can deliver job-creating private investment.
Over the past several years, On-Bill Repayment (“OBR”) and Property Assessed Clean Energy (“PACE”) programs have been developed that are expected to allow for significantly increased investment in energy efficiency and solar generation projects. State of the art PACE programs are up and running in California for commercial and residential properties, and in Connecticut and Ohio for commercial properties. Texas and New Jersey are expected to also launch programs in coming months. Later this year, Hawaii is expected to start the country’s first open-source OBR program that EDF helped design. Read More
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As innovative energy products and services come to market, so do new mechanisms to fund them. And existing funding options become more popular. This has resulted in a boom of finance jargon, especially regarding energy efficiency and renewable generation. Though many of the finance terms used in clean energy finance are similar to those used in traditional finance, it’s easy to get lost. We hope this glossary will help those in clean energy navigate the new and growing world of clean energy finance.
Asset Class: A grouping of similar types of investments that behave similarly in the marketplace and are subject to the same laws and regulations. Broad examples of asset classes include:
- Equities (also known as stocks) – assets that represent ownership of part of a company.
- Bonds – assets that guarantee a fixed payment stream.
Bonds are often further categorized based on structure or source of the payments. Examples of these subclasses include municipal, corporate and mortgage bonds. Read More
Last week, Connecticut’s Clean Energy Finance and Investment Authority (“CEFIA”), the state’s Green Bank, announced the sale of $24 million in loans for clean energy retrofits of commercial properties. The loans were originated through the state’s Property Assessed Clean Energy (PACE) program, which allows property owners to access 100 percent up-front financing for energy efficiency and renewable energy improvements on their buildings. Repayment is attached to a lien on the property tax bill, making PACE loans very attractive assets for investors.
According to Jessica Bailey, Director of PACE for CEFIA, “Connecticut’s PACE program is able to provide financing for commercial property owners to implement money saving clean energy projects. Without PACE, most of these property owners might not have access to attractive financing and these projects would not be completed.” Read More
Imagine a world where homes not only run on clean electricity but also generate, store, and sell it. A world where power companies get paid for conserving energy, not just producing it. Where, when supplies are tight, the power grid gives customers the option of being paid to reduce and even shift their energy use to a different time of day, allowing us to use more renewable energy.
The U.S. is poised to spend around $2 trillion over the next two decades replacing our outdated electric infrastructure. We must make sure those investments are not spent on replacing old, dirty power plants with more of the same. If we’re truly going to unleash the clean energy future, we must invest in renewable energy and a smarter grid that can smooth out the demand for power and reduce harmful air pollution. Read More
In 2010, I began working on financial policy at EDF. Our objective was to implement policies that would allow private sector companies to profitably deliver financing solutions to residential and commercial property owners footing the upfront cost of money-saving energy efficiency and clean distributed generation (such as rooftop solar) projects. While the residential solar market was already gaining steam at the time, most of the other markets had very limited momentum. But after attending the clean energy finance conference that EDF co-hosted yesterday with Citi, energy efficiency solutions provider Elevate Energy, and law firm Wilson Sonsini Goodrich & Rosati, it appears that the market for financing clean energy projects is beginning to accelerate rapidly.
The agenda featured 12 private companies from the clean energy sector (Kilowatt Financial, Clean Power Finance, Renovate America, AFC First Financial Corp., Renewable Funding, Clean Fund, Joule Assets, Noesis Energy, SCIEnergy, Metrus Energy, Hannon Armstrong, and Honest Buildings), plus a few more in the audience, that are executing a wide range of transactions using Property Assessed Clean Energy (PACE), On-Bill Repayment, Energy Services Agreements (ESAs), and many other innovative techniques to fund the transition to a low-carbon economy. Read More