The Department of Energy recently released a technical document co-authored by CDFA, the Energy Investment Partnerships Guide, that details unique public-private-partnerships focused on financing the development of clean energy technology. The fundamental feature of Energy Investment Partnerships is to attract private capital to finance clean energy projects, lowering the need for significant public investment. As private investors see consistent returns from clean energy projects, consumer access to financing will rise and the need for public participation in financing these deals will decrease.

There are a multitude of mechanisms available to directly or indirectly attract private capital into clean energy projects including: credit enhancements, bonds issuance, co-lending, CDFI leverage, and crowdfunding to name a few. Additionally, EIPs can attract private investment through secondary markets by issuing bonds or asset-backed securities to capitalize or sell off portfolios of clean energy loans.

In this special edition of CDFA’s Energy Finance Update, we’ll briefly examine the case studies focused on in the EIP guide. Click on the names of the various state organizations to be taken to their respective pages within the EIP guide, where more information can be found in detail.

California has a long history of clean energy legislation dating back to 1974, and they have constantly been at the forefront of clean energy integration. Recently, with the 2015 Executive Order from Governor Brown, the state has created interim GHG emission goals that would ensure the state reaches its desired goal of 80% of 1990 GHG emissions by 2050.

CAEATFA is a state agency that provides financial assistance for the development and commercialization of advanced transportation and clean energy technologies.

IBank finances public infrastructure and private economic developments that protect and sustain the environment while supporting clean energy and efficiency.

Connecticut has the highest electricity prices amongst the lower 48 states, due in large part to the issue of an aged and inefficient building stock. This makes the mission of delivering cheap and reliable energy efficiently all the more difficult. To combat these issues, Connecticut has implemented a renewable energy portfolio and aims to supply 20% of their energy by 2020.

CGB aims to lower the cost of energy efficiency and clean energy financing for commercial, industrial, nonprofit, governmental, and housing sectors.

Though Florida still relies largely on fossil fuels for energy generation, it has been reported by multiple research agencies to have the most solar potential of any state. This absence of robust rebate programs has created unique opportunities for bottom-up strategies from local and regional entities for solar development.

SELF is a non profit and CDFI that provides financing for energy efficiency and renewable energy products, and performs research on emerging clean technologies.

Hawaii established the Hawaii Clean Energy Initiative in 2008 to create and implement policies to dramatically shift the state’s energy generation away from imported fossil fuels. With the goal of 100% clean energy generation by 2045, and energy efficiency portfolio standards, the Clean Energy initiative has facilitated enormous innovation in the energy sector and relies heavily on EIPs to facilitate financing for these projects.

GEMS is a state financing program capitalized through a capital markets bond transactions and secured by a nonbypassable charge on all utility ratepayer bills.

The New Jersey Clean Energy Program’s (NJCEP) efforts over the past 15 years have helped contribute to the state’s ranking as third in the nation for solar generation. Realizing the benefits of resilient distributed energy systems but understanding that the considerable initial investment of implementation is a deterrent, New Jersey has sought to incentivize implementation through proliferation of energy investment partnerships.

NJCEP is a state agency tasked by the Board of Public Utilities with advancing energy efficiency and clean energy programs that offer financial incentives and services that reduce energy demand.

ERB is focused on existing and cost-effective generation technologies, including cogeneration, fuel cells, battery storage, and resilience upgrades for clean technologies.

New York recently released it’s 2015 State Energy Plan, launching the Reforming the Energy Vision (REV), which aims to build an integrated energy network able to harness the combined benefits of the central grid with locally generated power. New York’s 2015 State Energy plan hopes to achieve these goals by heavily encouraging energy investment partnerships throughout the state.

NYSERDA researches energy pricing and consumption in addition to offering financing programs to increase energy efficiency and clean energy generation across sectors.

NYGB is a $1B state-sponsored financial entity focused on increasing private sector investments in New York’s clean energy markets.

With a history of coal production, and more recently fracking, Ohio’s clean energy goals are more restrained than states such as California or New York. Competing state interests largely decentralize clean energy financing programs, resulting in regional development finance entities offering individual programs within their areas of service. As such, Ohio port authorities are some of the major players in clean energy investment.

TLCPA has the unique capacity to issue bonds for development and capital improvement projects, and provides clean energy financing through the Better Buildings Neighborhood Program.

GCEA is a nonprofit that offers services and incentives to building owners seeking to make energy efficiency improvements to their properties.

The Port has partnered with GCEA on a new PACE program designed specifically to fit the needs of southwestern Ohio.

Oregon’s push for more clean energy back to 1979 when the state’s Department of Energy instituted its first loan program targeting small-scale energy projects. Over time, this program has expanded to allow for a larger volume of small loans to business and individuals seeking energy efficiency and clean energy improvements.

ETO is a nonprofit providing services and arranging annual or multiyear contracts with lending allies and other partners supporting energy savings, helping reduce the upfront cost of clean energy projects.

Enhabit is a nonprofit that serves an intermediary, standardizing financing products and services for homeowners seeking clean energy improvements.

Craft3 is nonprofit and CDFI that provides comprehensive financing solutions for clean energy projects, as well as offering lines of credit for contractors performing the improvement work.