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. These transactions will potentially grow the market and make it easier for homeowners to find lower-cost loans for energy efficiency improvements.
Bonds are created for investors through a $100 million asset-backed securities medium-term note program that can be replenished and resold. The platform was formed by a public-private partnership consisting of collaborators from AFC First Financial, Citi, the Pennsylvania Treasury Department, Renewable Funding, the Energy Programs Consortium, the National Association of State Energy Officials, and the U.S. Department of Energy.
This news comes on the heels of several other secondary market transactions, and the announcement of Joule Assets’ $100 million fund for energy efficiency loan products. The influx of capital flowing in the right direction represents a turning point for the industry.
If you’d like to learn more about how the financial community intends to take advantage of this opportunity, and to expand customer uptake and access to hard-to-reach markets, you should attend ACEEE’s 2014 Finance Forum, where the theme will be “Building Momentum and Driving Demand.”
The program will feature the leaders that have been facilitating these groundbreaking transactions, including Citigroup, Renewable Funding, Kilowatt Financial, and Joule Assets, as well as lenders, utilities, policymakers, and clean tech companies that are driving investment in residential, commercial, and multifamily building sectors. (Just act fast: regular registration and special hotel rates are closing soon!)