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Property Assessed Clean Energy Cisco DeVries Renewable Funding LLC Austin, TX * November 20, 2009.

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Presentation on theme: "Property Assessed Clean Energy Cisco DeVries Renewable Funding LLC Austin, TX * November 20, 2009."— Presentation transcript:

1 Property Assessed Clean Energy Cisco DeVries Renewable Funding LLC Austin, TX * November 20, 2009

2 Climate and Energy Crisis

3 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

4 Whats the Hold Up? Utility Bills: Simple monthly service Solar, Energy Efficiency: Large upfront cost

5 Ciscos iPhone Bill $119/ month $1428/ year $28,560/ 20 years Ciscos Utility Bill $129/ month $1548/ year $30,960/ 20 years

6 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.

7 PACE: How it Works City or county creates type of land-secured financing district or similar legal mechanism (HB 1937) Property owners voluntarily sign-up for financing and install energy projects Proceeds from Clean Energy Bond or other financing provided to property owner to pay for energy project Property owner repays bond through property tax bill over up to 20 years

8 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

9 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 citys general fund Financing mechanism well known to local governments and bond market Promotes the green economy, creates green jobs

10 National Support 10 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)

11 States with Legal Authority 11

12 Existing Financing Programs LocationInterest Rate Max LoanRepayment Term Project Types Approved Projects Berkeley, CA 7.75%$37,50020 yearsSolar$1.5M Boulder, CO6.68% and 5.20% (APR %) $50,00015 yearsSolar, 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 TBDHome Value Metric Up to 20 years Solar, Wind, EE TBD

13 Texas Estimates Market Penetration: Owner Occupied Housing Units Number of HomesTotal Value of Improvements Texas Jobs Created (Estimated) 1%52,789$1.3 Billion14,319 5%263,946$6.6 Billion71,595 25%1,319,729$32.9 Billion357, Assumptions/ Sources: $25,000 average improvement Project mix: half energy efficiency and half solar Jobs multiplier: Center for American Progress (direct and indirect) Owner Occupied Housing units: U.S. Census Data

14 Implementation Issues Legal Authority/ Structure – HB 1937 o Voluntary program, private property Financing o On-demand bond financing for small projects Administration/ Application Processing o Line up expectations, requirements, timelines o Cost effective administration o Regulatory scheme, quality assurance Marketing and Outreach

15 Emerging Financial Structures Aggregated Bond Issuance o Boulder County, CO Interim Financing Model o City/ County Funds Sonoma County and Palm Desert o Private Capital Berkeley/ San Francisco/ San Diego (Renewable Funding) Babylon, NY model Commercial Banks 15

16 Administration Coordinate stakeholders, integrate into system Cost effective administration o Education, Marketing o Decision Tools o Customer Service o Application Processing o Funding Regulatory scheme, quality control Tracking and reporting 16

17 BerkeleyFIRST Website

18 Early Success 18 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

19 San Francisco Website 19

20 Renewable Funding A partner to provide a turnkey PACE program for cities and property owners.

21 Cisco DeVries


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