The Connecticut Green Bank: Market Transformation and Financing for clean energy and energy efficiency
Compilation Video 2
Energy Challenge in Connecticut High Cost CT has THE highest cost for electricity in the "lower 48" Old, Energy Inefficient Building Stock CT has some of the oldest and most energy inefficient building stock Need for "Cleaner / Cheaper" Energy Sources Programs that will diversify our energy mix into renewable/clean power "More Reliable" Grid 5 major storms in 2 years with widespread outages 3
Connecticut Green Bank: Mission and Goals Support the Governor s and legislature s energy strategy to achieve cleaner, cheaper and more reliable sources of energy while creating jobs and supporting local economic development Attract and deploy capital to finance the clean energy goals for Connecticut Develop and implement strategies that bring down the cost of clean energy in order to make it more accessible and affordable to consumers Reduce reliance on grants, rebates and other subsidies and move towards innovative low-cost financing of clean energy deployment 4
Connecticut Green Bank: Organization Quasi-public organization created by PA 11-80 and successor to the Connecticut Clean Energy Fund Balance Sheet currently $100 million in assets Support supported by a $0.001/kWh surcharge on electric ratepayer bills that provides approximately $30 MM a year for investments, RGGI (EE and RE) about $5-$10 MM a year, federal competitive solicitations (i.e. SunShot Initiative) and noncompetitive resources (i.e. ARRA-SEP), private capital, etc. 5
Attract and Deploy Capital Financial Innovation AND Marketing Innovation Attract and deploy capital to finance the clean energy goals for Connecticut Increase the attractiveness to capital providers Increase the attractiveness to consumers 6
Connecticut Green Bank: Financial Tools Grants Equity Loans Interest Rate Buy Down Special Capital Reserve Fund Connecticut Green Bank Subordinated Debt Loan Loss Reserves Third Party Insurance Energy Savings Performance Contracts Commercial Property Assessed Clean Energy Bonding On Bill Repayment Leases, PPAs, and ESAs 7
Green Bank Model Works Doing More, Faster and Under Budget REFERENCES Connecticut s Green Bank Energizing Clean Energy Finance (FY 2013 Annual Report) 8
C-PACE: In 90 Seconds 9
Property Assessed Clean Energy An innovative financing structure that enables commercial, industrial, and multi-family property owners to access financing for qualified energy upgrades and repay through a benefit assessment on their property tax. Private capital provides 100% upfront, low-cost, long-term funding Repayment through property taxes A senior PACE lien is put on the property and stays regardless of ownership 10
C-PACE Addresses Key Barriers Lack of funding? Near term plan to sell? Insufficient payback/roi? Split incentives? Uncertain savings/technical expertise? 100% upfront, 20 year financing Tax obligation fixed to property Positive cash flow in year 1 Assessment/savings pass to tenants Technical underwriting / SIR>1 11
Forstone Capital Video 12
Case Study: Comprehensive Energy Efficiency Location: 855 Main Street, Bridgeport, CT Building Type: Large Office (>50,000 SF) Building Size: 112,000 Square Feet Total Project Cost: $2,462,000 Utility Incentives: $469,317 C-PACE Financing: $1,992,683 Term: 20 Years Annual Interest Rate: 5.5% Annual C-PACE Assessment: $166,563 Annual Energy Cost Savings: $241,900 Lifetime Energy Cost Savings: $6,047,504 Annual Energy Savings: 6,650,053 kbtu
Case Study: Solar with ZRECs Location: 1841 Broad Street, Hartford CT Building Type: Industrial Total Project Cost: $325,000 Incentives: ZREC C-PACE Financing: $325,000 Term: 20 Years Annual Interest Rate: 5.5% Hartford West Hartford Bridgeport Norwalk Simsbury Stamford Stratford Southbury Annual C-PACE Assessment: $26,995 Annual Energy Cost Savings: $46,108 Lifetime Energy Cost Savings: $922,165 Annual Energy Savings: 143,941 kwh
Case Study: Non profits Location: 319 Barnum Avenue, Bridgeport CT Building Type: House of Worship Building Size: 10,600 Square Feet Total Project Cost: $53,087 Hartford West Hartford Bridgeport Incentives: $3,460 UI incentive (*boiler Norwalk only) Simsbury Stamford C-PACE Financing: $49,627 Stratford Southbury Term: 10 Years Annual Interest Rate: 5% Annual C-PACE Assessment: $6,506 Annual Energy Cost Savings: $13,678 Lifetime Energy Cost Savings: $136,776 Annual Energy Savings: 241 MMBtu
Program Snapshot $65 million in deals approved Sold initial $30M+ portfolio through bid process (closed 5/15/2014) 105 towns on board = 90% of the CT market eligible 100 + contractors trained 20 qualified capital providers 100 Projects in Pipeline = over $75M 30 mortgage lenders have provided consent
C-PACE: Greentech Media 17
CEFIA Capital Partners
Home Energy Improvements Market Trends, Homeowner Resources and Financing Solutions
At least 1 GW potential or $4.5 billion of investment reaching 150,000 homes. Less than1% penetration, but growing rapidly.
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Solar has never been more affordable High electric costs Lower installed costs New financing options make going solar easier than ever before! Flexible leasing and ownership (loan) options 22
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The website with all the information you need to Go Solar 24
Customers save on average 30%
State Natural Gas Targets Goal of 280,000 Conversions by 2024 Gas companies did ~15,000 conversions in 2014 Berlin Farmington New Canaan Stamford Bloomfield Glastonbury New Haven Stratford Branford Greenwich New London Torrington Bridgeport Hamden Newington Wallingford Bristol Hartford North Haven Waterbury Danbury Manchester Norwalk Watertown East Hartford Meriden Norwich West Hartford East Haven Middletown Plainville West Haven Enfield Milford Rocky Hill Westport Fairfield Naugatuck Shelton Wethersfield New Britain Southington Wilton Windsor
The Flexible Smart-E Loan Local Lenders and Local Contractors Helping Residents & Communities Across the State Jeff Watson and Lila Garipova used Smart-E to switch to natural gas
Special Offers Available Flexible Rates and Terms No money down Finance health and safety measures too Apply at your local lender
Green Bank Low Income Initiative Low Income Housing Market Analysis Available 34% of CT s households are low-income (507,000) they are really struggling, making hard choices Breakdown of low-income units: 30% owner occupied single family homes 40% small multifamily rentals (2-19 units) 15% med-large multifamily 7% in owner occupied 2-4s and 7% in single family rentals Green Bank staff market analysis and draft strategy available
Multifamily Housing Programs Resources and Financing Solutions
Multifamily Housing Financing Programs CHIF LIME LOAN Ian Fischer ifischer@urban-atlantic.com Cal Vinal Cvinal@chif.org MULTIFAMILY CREDIT ENHANCEMENT FUND ENERGY PERFORMANCE BENCHMARKING Kim.Stevenson@ctcleanenergy.com Kim.Stevenson@ctcleanenergy.com
Case Study: Multifamily Plaza on the Green, Waterbury 157 units Sr. affordable housing, master metered $1.7MM energy upgrade (electric to gas) $170,000 annual energy savings (projected) Additional capital needs for masonry CPACE loan with CHFA subordinating
Kerry O Neill, Managing Director, Residential Programs 860-257-2884 Kerry.oneill@ctcleanenergy.com Genevieve Sherman, Acting Director, Commercial & Industrial Programs 860.257.2897 genevieve.sherman@ctcleanenergy.com www.c-pace.com Kim Stevenson, Associate Director, Multifamily Programs 860-257-2890 Kim.stevenson@ctcleanenergy.com