How Important is Energy Efficiency?. Presented at: PACE Energy Conference - Promoting Energy Efficiency in Commercial Buildings New York – June 1, 2011. Coalition for Green Capital Kenneth Berlin, General Counsel (202) 371-7350 [email protected])
Information from Deutsche Bank report: http://bit.ly/lKCMzK
*Financial transaction barriers and actual quality trade-offs are factored into the initial NPV-positive potential calculation as real costs.
Source: McKinsey analysis
The national Green Bank would be funded with either loans or equity from the Treasury Department, equity investments for the private sector (with a cap on the rate of return), bonds and other sources.
State Green Banks would be funded from existing funds (e.g. in Connecticut special purpose mil charges), RGGI or other cap and trade revenues, bonds, capped private sector investments and other sources.
There would be less leverage on energy efficiency loans than on energy project loans
What is the Green Bank?: A hybrid for-profit, or not-for- profit low-risk institution designed to safely leverage public dollars into massive private investment
Supports up to 100 GW of renewable projects-replacing more than 20% of carbon-based capacity
Loan, loan guarantees
Combined with equity, can support up to $200B in investment in clean energy
Support up to $100B in loans over 20 years
Loans, loan guarantees
5. After the loan is repaid, the consumer sees the full benefit of the efficiency measures, the utility has saved money and created local jobs, and the taxpayer has been repaid in full.
1. The Green Bank loans 100% of the cost of an energy efficiency project to a utility or other source at a low rate.
2. The utility disperses the funds to install energy efficiency measures in homes and small businesses, creating jobs in the local community.
4. Through on-bill financing, a portion of the savings shows up on the consumer’s bill, and the rest is transferred to the utility, which uses the money to repay the initial loan from the Green Bank over an extended tenor. (For example, if there is a savings of $100/month, the consumer receives a $25 discount on the bill and the utility charges $75 for electricity that is not being provided in order to re-pay the loan). The utility will also have the right to place a lien on the property in order to obtain payment.
Residential property/ Small business
3. The owner of the residence/small business pays no up-front cost to have their building retrofitted, and sees a reduced energy bill.
12008 is the dollar year basis for all figures unless otherwise indicated.
2 Environment Northeast, (Energy Efficiency: Engine of Economic Growth, Executive Summary October 2009)