Energy Efficiency Financing
Even when the economy is doing well, economic growth and job creation always seem to be at the center of focus for policymakers at every level of government. So it’s only natural that when energy efficiency policies and programs are being discussed one of the questions that often comes is how will proposed initiatives affect jobs.
Part One in a series where ACEEE examines the most effective roles for energy efficiency programs and market-driven solutions in scaling the deployment of energy efficiency.
This winter, ACEEE, in partnership with Energi Insurance Services, will host a second gathering of select members of the Small Lenders Energy Efficiency Community (SLEEC) in Washington, D.C. The initial SLEEC convening in October 2013 brought together small- to medium-size lenders to discuss strategies for expanding activity in the market for energy efficiency financing.
U.S. Places 13th Out of 16, Behind Australia, India, and South Korea; Germany Wins “World Cup” of Energy Efficiency: 2nd International Scorecard Evaluates 16 Leading World Economies on 31 Categories.
After a long warm-up, energy efficiency is taking its rightful place as a starting player in the clean energy game. This spring, we’ve seen both the public and the private sector put serious resources into helping build financing solutions to help efficiency reach the scale it needs.
State and local governments are laboratories for innovation in energy efficiency policies and programs. Policymakers, regulators, and citizens at all levels increasingly recognize that energy efficiency is crucially important to their economies and are increasingly taking action and seeking information on policies and programs in their communities. Today ACEEE is launching a new database tool that highlights the energy efficiency leadership—and opportunities for improvement—of state and local governments around the United States.
Energy efficiency is increasingly viewed as an essential element of community development, and is arguably becoming the most appreciated and integrated “green” topic in the field. For example, a growing number of state housing finance agencies actively encourage the inclusion of energy-efficient features in the properties in which they invest.
The moment we have been waiting for has arrived! The Warehouse for Energy Efficiency Loans (WHEEL), a financing platform that will open the market for energy efficiency investment to institutional investors, is open for business. WHEEL acts as a virtual financial warehouse for relatively small individual loans, holding them until there are enough loans to attract attention from large investment houses.
Recent months have seen some exciting developments in energy efficiency finance. Investment funds, capitalized at about $200 million, are set to break into the potentially extensive market for energy efficiency projects in the buildings sector.
Over the past several years, the energy efficiency community has worked hard to engage lenders in what is estimated to be a $279 billion market. At ACEEE’s annual Finance Forums, we have witnessed tremendous progress.