Kresge Foundation, in partnership with Clean Energy group (CEG) and New York City Energy Efficiency Corporation (NYCEEC) are committing 3.3 million USD in a multiyear innovative financing program toward solar PV plus battery storage projects for historically underserved communities. Other foundations can join the effort.
The investment will be made available through a Kresge loan guarantee and connected grants. NYCEEC is the lender selected to participate in the loan guarantee while CEG will manage the effort.
Communities with low income rates and wealth are statistically the most vulnerable but rarely have access to technologies that reduce the impact of climate change , among others due to lack of investment and financial capability. The investment by the partnership will allow more urban communities to access necessary funding.
Targeted projects are solar and storage technologies that can ensure reliable power supply. 3 million USD, structured as 50 percent payment guarantee to ensure loan payments and reduce the risk of default, are dedicated to reduce credit risk for such projects in low- and moderate-income areas. 170,000 USD are dedicated to capacity-building efforts such as lender’s financial abilities, building project pipelines and information sharing. Another 120,000 USD in technical-assistance grants shall enable eligible project owners and developers to assess technical and financial feasibility of new projects.
“The Kresge Foundation is persuaded that program-related investments —including below-market loans and loan guarantees —can prove out the viability of delivering clean, resilient power to historically underserved communities,” said Lois DeBacker, Managing Director of Kresge’s Environment Program. “That’s why we are pleased to announce this pairing of a loan guarantee with traditional grants to speed the adoption of solar+storage technologies in communities with the greatest need.”
“This innovative program is a comprehensive finance model that combines a first-of-its-kind loan guarantee with grants that build capacity and assess project feasibility ― a new strategy that willbuild demand and speed deployment of resilient energy in those communities that need it most,” said Robert Sanders, CEG’s senior finance director, who helped develop the program with Kresge.