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General
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Written by Tyler Savage
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Tuesday, 22 June 2010 21:51 |
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On Monday, PG&E announced a partnership with San Francisco based company SunRun to provide a substantial investment of $100 million to finance and install solar panels on 3,500 homes in five states. In a time when large banks are reducing financial resources for home improvement projects the plan would make PG&E a key player in providing creative financing options to help make homes more energy efficient. SunRun Chief Executive Edward Fenster said "We see this as a harbinger for the future - a company like PG&E entering into an arrangement like this shows that energy companies are seeing distributed photovoltaics as a real business that will grow and become more important over time. This could be a turning point in the industry in terms of who is providing capital."
"PG&E will be funding the rooftop systems in question via its subsidiary, Pacific Energy Capital II, a tax equity fund. Tax equity is usually the province of large banks. For example, SunRun took in $90 million in tax equity from U.S. Bancorp in December. Basically, it’s a tool to finance cleantech companies that receive support from the government. In lieu of traditional returns, the investor — PG&E in this case — gets tax benefits in addition to some cash returns. Considering how much tax equity has dried up among banks since the 2008 economic downturn, this is a pretty innovative move for the utility."
This partnership is perhaps more unique than other financing options available to homeowners as SunRun covers most of the cost to install the solar panels and holds ownership of the system. This largely removes the financial barrier for homeowners as the cost to install a 5 kW solar roof system is roughly $30,000. The homeowners would then be required to pay for the power used from the solar panels. In fact, this is the second investment by PG&E in the last few months to help provide financing for solar panel installation. Earlier this year PG&E partnered with SolarCity, a Foster City company, to invest $60 million with the goal to install 1,000 solar roof systems.
PG&E's increased investment in solar can be partly due to California state law requiring each utilities' energy portfolio to be made up of 20% renewables by the end of 2010. According to the Public Utilities Commission Renewable Standard Portfolio, PG&E is currently providing 14.4%. Utilities are not expected to reach the 20% target by the end of the year, but if the utility company meets certain criteria it can qualify for an extension until 2013. If the energy provider fails to meet the target timetable it will be required to pay $50/MWh up to $25 million per year. Utility companies are on track to reach the 20% target by 2012.
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Last Updated on Monday, 19 July 2010 20:53 |
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General
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Written by Rafael Reyes
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Monday, 21 June 2010 00:00 |
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CaliforniaFIRST, San Francisco's SFGreenFinance and other national PACE programs which provide innovative financing for energy efficiency, solar and other clean energy are being slowed due to issues related to the mortgage agencies.
San Francisco and other counties and cities have suspended energy efficiency financing programs for homeowners because of lending guidance issued by the country’s largest home loan purchasers.
The government-controlled Fannie Mae and Freddie Mac issued new lending guidance in May that suggested they wouldn’t accept loans that included Property Assessed Clean Energy — or PACE — liens. The fallout is that nearly all PACE programs are stalled.
Update: In the San Jose Mercury News, a researcher at UC Berkeley argues that the move by Fannie Mae and Freddi Mac is misguided:
First, mortgages are always junior to local government tax and assessment liens. Assessment districts have existed in the United States for more than a century, and PACE programs simply build on this existing authority by adding clean energy and energy efficiency to the types of improvements that assessments can finance.
Second, in the event of a foreclosure, the amount of money that local governments would collect on PACE assessments does not equal the total value of the clean energy financing, but rather the amount of delinquent assessment payments only — typically far less than $1,000.
Third, PACE programs have safeguards to prevent contracting with high-risk homeowners, following guidelines issued by the U.S. Department of Energy.
Finally, property improvements from PACE are likely to increase home values by reducing energy bills and improving comfort. Homeowners can point to a new solar hot water heater, extra insulation in the walls, sealed air ducts, and a rooftop solar array to add marketability.
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Last Updated on Monday, 21 June 2010 17:02 |
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General
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Written by Rafael Reyes
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Thursday, 27 May 2010 02:50 |
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President Obama visited Solyndra in Fremont today highlighting the innovative solar company and the importance of federal support in innovation.
Last year, the Department of Energy gave Solyndra a $535 million loan guarantee funded through the American Recovery and Reinvestment Act. Five-year-old Solyndra was the first company to receive a loan guarantee, and it has become a poster child for the success of federal stimulus spending and its ripple effects on the economy.
Solyndra is one of several companies in Silicon Valley making solar panels that use non-silicon materials known in the industry as "thin film." Solyndra's panels are largely designed for flat, commercial rooftops and are installed in 200 locations around the world.
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Last Updated on Thursday, 27 May 2010 02:57 |
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General
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Written by BACC Editor
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Thursday, 20 May 2010 22:55 |
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Despite the economic downturn and the large plunge the U.S. venture capital investment in cleantech companies suffered in the first quarter of 2009, an Ernst & Young LLP analysis released that VC investments in this surging market rose to $733 million in the first quarter of 2010. This is a 68% increase just from a year ago.
Specifically, there are certain areas driving the most investments in the cleantech market. According to Ernst & Young, there is a growing focus on energy efficiency, electric vehicles and solar investments; each of those taking large sums of venture investments in cleantech during the first quarter of 2010.
The venture investment focus on energy efficiency is reflective of broader trends. Electric utility energy efficiency budgets grew by 60% over the past two years, reaching $4 billion in 2009 - up from $2.5 billion in 2007, according to a report from the Consortium for Energy Efficiency (CEE). In March, the US Senate introduced a bill that would establish a "Building Star" program, which would yield a prospective $6 billion in funding. The program includes rebates and financing incentives for building owners to upgrade their property's energy efficiency, including interior and exterior lighting, energy management, HVAC, motors, and drives.
And investments in the cleantech market are projected to keep growing due to the economic recovery, rise in oil prices and the ongoing deployment of federal stimulus funds. Moreover, the analysis shows that "venture investment in cleantech [is] recovering more quickly than venture capital overall". These are all good signs for the cleantech market, visible in examples such as BACC partner Better Place's significant new round of funding. |
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Last Updated on Thursday, 20 May 2010 23:36 |
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General
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Written by Rafael Reyes
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Monday, 15 February 2010 18:25 |
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Moving on what is going to be a wave of innovative financing in California and likely nationally to enable solar power, energy efficiency and other green steps for property owners, San Francisco implements a major financing program similar to Berkeley's BerkeleyFIRST.
Mayor Gavin Newsom signed legislation Monday that creates a citywide special tax district to finance energy efficiency, renewable energy and water conservation improvements. The loans, which will be attached to the property -- not the owner, will be paid back through property taxes.
"This green financing program is going to create green jobs and fuel the next wave of energy and water efficiency and renewable energy development in San Francisco," Newsom said in a statement. "It helps home and property owners overcome the large up-front costs of major environmental improvements."
Beginning in March, San Franciscans will be able to seek financing from the Property Assessed Clean Energy (PACE) program, which will make $150 million in bonds available, according to Renewable Funding, a private group that will put up the capital and administer the program at no cost to the city.
Soon many property owners throughout the state will have access to similar financing as the CaliforniaFIRST program facilitated by Renewable Funding ramps up and launches its pilot program in the Summer. Numerous counties have already signed on to this pilot including Alameda, San Mateo, Santa Clara and Monterey.
Rafael @www.ClimateAtBay.net
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Last Updated on Friday, 07 May 2010 20:16 |
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