property assessed clean energy cisco devries renewable funding llc austin, tx * november 20, 2009
TRANSCRIPT
Property Assessed Clean EnergyCisco DeVriesRenewable Funding LLC
Austin, TX * November 20, 2009
Climate and Energy Crisis
Our Secret Weapon
Reduce energy use Save money Create jobs Cut greenhouse gas
emissions
$520B investment by 2020 would yield savings of $1.2 trillion and 1.1 gigatons of GHG. (McKinsey Report, 2009)
Create 6+ million new jobs
What’s the Hold Up?
Utility Bills: Simple monthly service
Solar, Energy Efficiency: Large upfront cost
Cisco’s iPhone Bill
$119/ month
$1428/ year
$28,560/ 20 years
Cisco’s Utility Bill
$129/ month
$1548/ year
$30,960/ 20 years
PACE Financing
Property Assessed Clean Energy
Voluntary Program allows property owners to install solar and energy efficiency projects with little or no upfront cost. Costs repaid on property tax bills over 20 years.
PACE: How it Works
Benefits to Property Owner
Removes many of the financial hurdles to installing solar systems and energy efficiency upgrades
• No upfront cost to the property owner • Payments fixed for 20 years• Customer chooses contractor/installer• Property tax transfers to the new owner when the
property is sold• Utility bills decrease due to energy savings• Credit analysis is on the property, not the person
Benefits to Cities and Counties
Low risk financing tool for cities and counties
• Helps cities and counties meet their climate and energy goals
• Program costs can be paid out of the financing• No liability or other exposure to a city’s general fund• Financing mechanism well known to local governments
and bond market• Promotes the “green” economy, creates green jobs
National Support10
“We are going to make it a lot easier to borrow money. We are doing this by encouraging communities to give you the
option to pay the expense of retrofitting your home by paying it back on your property taxes.”
-- Vice President Joe Biden (October 19, 2009)
“We are going to make it a lot easier to borrow money. We are doing this by encouraging communities to give you the
option to pay the expense of retrofitting your home by paying it back on your property taxes.”
-- Vice President Joe Biden (October 19, 2009)
States with Legal Authority11
Existing Financing Programs
Location Interest Rate
Max Loan Repayment Term
Project Types
Approved Projects
Berkeley, CA
7.75% $37,500 20 years Solar $1.5M
Boulder, CO 6.68% and 5.20% (APR + 1.5-2%)
$50,000 15 years Solar, Wind, EE
$10+ M
Palm Desert, CA
7.0% $60K or approval
5, 10, 15 or 20 years
Solar, EE $7.5M
Sonoma County, CA
7.0% $60K or approval
5, 10, 15 or 20 years
Solar, EE, Water
$30+ M
California Statewide
TBD Home Value Metric
Up to 20 years
Solar, Wind, EE
TBD
Texas Estimates
Market Penetration:
Owner Occupied Housing Units
Number of Homes Total Value of Improvements
Texas Jobs Created
(Estimated)
1% 52,789 $1.3 Billion 14,319
5% 263,946 $6.6 Billion 71,595
25% 1,319,729 $32.9 Billion 357,796
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Assumptions/ Sources: $25,000 average improvementProject mix: half energy efficiency and half solarJobs multiplier: Center for American Progress (direct and indirect)Owner Occupied Housing units: U.S. Census Data
Implementation Issues
Legal Authority/ Structure – HB 1937o Voluntary program, private property
Financingo On-demand bond financing for small projects
Administration/ Application Processingo Line up expectations, requirements, timelines o Cost effective administrationo Regulatory scheme, quality assurance
Marketing and Outreach
Emerging Financial Structures
Aggregated Bond Issuanceo Boulder County, CO
Interim Financing Modelo City/ County Funds
Sonoma County and Palm Deserto Private Capital
Berkeley/ San Francisco/ San Diego (Renewable Funding)
Babylon, NY model Commercial Banks
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Administration
Coordinate stakeholders, integrate into system Cost effective administration
o Education, Marketingo Decision Toolso Customer Serviceo Application Processingo Funding
Regulatory scheme, quality control Tracking and reporting
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BerkeleyFIRST Websitewww.berkeleyfirst.renewfund.com
Early Success18
“The entire process has been flawless, from quote and installation through the rebate and funding process. Everyone
I dealt with was terrific and made the process painless.” -- Aaron Mann, BerkeleyFIRST homeowner
“The entire process has been flawless, from quote and installation through the rebate and funding process. Everyone
I dealt with was terrific and made the process painless.” -- Aaron Mann, BerkeleyFIRST homeowner
San Francisco Website19
Renewable Funding
A partner to provide a
turnkey PACE program for
cities and property owners.
