Clean Energy Financial Innovation Program
The Department of Energy and Environmental Protection (“DEEP”), pursuant to the American Recovery and Reinvestment Act (“ARRA”) State Energy Program Formula Grants (“SEP”), made an award of One Million Two Hundred Fifty Thousand and No/100 Dollars ($1,250,000.00) to the Clean Energy Finance and Investment Authority (“CEFIA”) for the CLEAN ENERGY FINANCIAL INNOVATION PROGRAM (the “Program”). The award funds will be used to leverage additional public and private sector sources of capital through a financing program. Pursuant to the U.S. Department of Energy’s (“DOE”) SEP Program Notice 10-008C on “Guidance for State Energy Program Grantees on Financing Programs” (“DOE Guidance”), this award will be used to fund the Program as described in the below Scope of Work.
The goals of the Program are to:
- Create a competition that incites financial innovation around residential clean energy financing; and
- Transition away from the subsidy model towards financing of clean energy
Uses of funds might include the buy-down of interest rates, support for loan losses, or third party insurance.
Areas that financial innovation might be able to address include, but are not limited to, credit enhancements for financial products that:
- Encourage third party lenders to extend credit to currently underserved low and moderate income households
- Support financing that uses non-traditional underwriting, such as the use of utility bill payment history as a proxy for credit
- Enable micro-loans for low and middle income households seeking financing for clean energy projects and qualification of financial institutions for CRA credits;
- Develop simple, fast processes to originate and underwrite small loans, preferably in one contact with the homeowner, while maintaining appropriate underwriting standards;
- Create insurance products that guaranty the energy savings for households to demonstrate the value of energy efficiency and renewable energy savings covering debt service payments and reduce risk;
- Provide households with an opportunity to realize the economic value of solar PV, solar hot water or other renewable energy systems through ownership versus a lease;
- Finance energy efficiency upgrades including the conversion of heating oil to natural gas access for homes to save on cleaner energy resources;
- Use on bill repayment and underwriting standards based on utility bill payment history, and a flexible source of capital with a loan loss reserve for low-moderate income households; or
- Provide loans for automobile owners to install electric vehicle recharging stations in combination with renewable energy resources at home.
Links to Important Information
Pre-submittal conference call for the Clean Energy Financial Innovation Program RFP
- 2:00 pm (EST), Wednesday, April 25, 2012. Call-in number (877) 885-3221, Passcode 8470099