EXPLORE FINANCING OPTIONS
Not sure where to start on energy efficiency financing? Use this page to explore financing options and see how they compare to each other. Anywhere in the page, click on a Financing Option Button to learn more about that option, including how to connect with Financial Allies who can finance your projects.
ENERGY EFFICIENCY FINANCE 101
Energy efficiency is a powerful way to reduce operating costs, cut greenhouse gas emissions, and improve the reliability of buildings. However, upfront costs are a major barrier to getting energy efficiency projects done. Many organizations don’t have the capital available to pay for the equipment, installation, and servicing of energy efficiency upgrades out of pocket. Even those with plentiful cash may prefer to spend it on their core operations rather than efficiency.
That’s where financing comes in. In the broadest terms, “financing” simply means using someone else’s capital to fund projects in your facilities and then paying it back over time. In practice, there are a variety of strategies and structures to accomplish this, each with their own pros, cons, and nuances. These are often called financing products, financing mechanisms, or, as we call them, financing options. They range from simple options like loans and leases, to more specialized options designed to overcome specific challenges, such as property assessed clean energy (PACE) or energy services agreements (ESAs).
As demand for energy efficiency financing has grown, the diversity of financing options available in the marketplace—and the number of financing companies that provide them—has grown as well. This means that there is probably a financing option in the market that will fit your needs. But it also means that most building owners, executives, and other decision-makers don’t have time to understand and compare all of the available options.
Here is where you can navigate the different types of financing: to help you learn about the options, decide which might be a good fit, and begin connecting with financing providers within a few minutes.
EFFICIENCY FINANCING LANDSCAPE
The diagram below summarizes the energy efficiency financing options available in the market. “Traditional” options are commonly used to finance efficiency projects in addition to other types of goods and services, and “specialized” options are specifically designed for efficiency projects. Organizations can also fund projects internally without seeking third-party financing.
| FINANCIAL ALLY | SECTOR | LEASES | LOANS | BONDS | ESPCs | ESA | PACE | ON-BILL FINANCING | GRANTS | PPAs | PERFORMANCE INSURANCE | SECONDARY MARKET SERVICES |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Abundant Power | All |  | ||||||||||
| All American Investment Group | All | | | | | | | |||||
| Bank of America Merrill Lynch | All | | | | | | | |||||
| BioStar Renewables | All | | | | | | | | ||||
| Blue Hill Partners LLC | All | | ||||||||||
| Byline Financial Group | All | | | |||||||||
| CBJ Energy, LLC | All | | ||||||||||
| Citi | All | | | | | |||||||
| Clean Fund LLC | All | | ||||||||||
| Commercial Power Partners, LLC | All | | | | ||||||||
| Connecticut Green Bank | All | | | | | | | |||||
| Energi Inc. | All | | ||||||||||
| Energi Pros (EPIC) | All | | | | |
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| Flywheel | All | | ||||||||||
| Greenworks Lending | All | | ||||||||||
| Hannon Armstrong | All | | | | | | | | ||||
| Metrus Energy | All | | | | | |||||||
| NYCEEC | All | | | | | | ||||||
| OUS Capital | All | | | | | |||||||
| PACE Equity | All | | ||||||||||
| Renew Financial | All | | | | ||||||||
| Rockwell Financial Group | All | | | |||||||||
| Samas Capital | All | | ||||||||||
| Southeast Capital & Finance, LLC | All | | | | | | |
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| SparkFund | All | | | | ||||||||
| Structured Finance Associates, LLC | All | | ||||||||||
| Urban Ingenuity | All | | | |||||||||
| Ygrene Energy Fund | All | | ||||||||||
| AFL-CIO Housing Investment Trust | Multifamily | | |
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| California Housing Partnership Corporation | Multifamily | | ||||||||||
| Community Investment Corporation | Multifamily | | | |||||||||
| Enterprise Community Partners | Multifamily | | | |||||||||
| LISC | Multifamily | | | |||||||||
| Low Income Investment Fund | Multifamily | | | | ||||||||
| Triple Bottom Line Foundation | Multifamily | | | | | | |