By Michael Swack
Senior Fellow, Center for Impact Finance, Carsey School of Public Policy, University of New Hampshire.
Energy upgrades in homes and buildings can come with hefty upfront costs, but financing models are available to help fund upgrades that can lower utility bills. Because local government officials are sometimes unfamiliar with financing models, the EECBG Blueprint Cohorts is offering sessions on identifying lending partners, understanding underwriting standards, and how to secure financing for the projects.
The University of New Hampshire’s Center for Impact Finance (CIF) is leading an EECBG cohort titled Unlocking Sustainable Financing Solutions for Energy Projects & Programs with Revolving Loan Funds. With our background in community development finance to fund equitable and sustainable energy projects, CIF teaches cohort participants how to create a market for energy-efficient technologies.
The cohort offers an overview of the process, benefits, and development and implementation of revolving loan funds (RLFs). These funds establish a dedicated reserve from which loans are made for energy projects. Loan repayments are then used for new loans. RLFs expand access to capital and often address hard-to-serve markets.
The cohort curriculum covers federal funding opportunities, coordination with states, identifying markets for loans, stakeholder engagement, and strategies for product development and underwriting. The cohort presents local governments with tools and online resources that provide an overview of setting up a fund. Participants learn how to develop fund objectives, understand the potential market for energy loans, reach that market, and capitalize and manage the funds.
We provide local government staff with the knowledge and tools to overcome financial barriers to energy upgrades. With appropriate financial support and technical expertise, communities can unlock the potential of energy upgrades to reduce pollution and save money.