September 7th, 2016– Today the American Council for an Energy Efficient Economy released a paper titled “Green Bank Accounting: Examining the Current Landscape and Tallying Progress on Energy Efficiency”. HB&C provided some context, research and comments in the formation of this paper and are excited with the result, which provides a great overview of the state of play in some of today’s more robust Green Bank market-states. The release of this paper comes on the heals of DOE’s recent SEP award to the States of Colorado and Missouri for $450,000 to develop statewide green banks. This is clearly a growing market.
Below is an excerpt from the paper’s executive summary conclusions and here is a where you can download the full text of the document, which HB&C highly recommends reviewing if you, your state or local jurisdiction are interested in exploring a Green Bank.
Green banks are still relatively new, and there is significant opportunity to expand and refine program offerings. In particular, green banks’ potential to facilitate combined delivery of renewable energy and energy efficiency programs has not been fully maximized to date. Refining program marketing and delivery in order to maximize combined projects will be an important step in meeting increasingly ambitious state goals for clean energy deployment.
Public policy is also important in guiding green bank activity in certain markets. Without explicit policy directives carried out by green banks, today’s investment industry may not have sufficient incentive to develop specialized financing products for low-income and multifamily markets or conduct outreach to these communities.
Data collection efforts need to be improved and standardized in order to truly assess the additional impacts of the financing programs offered by green banks. Green banks have ambitious goals of deploying clean energy technologies and delivering energy savings. It will be important to understand the incremental impacts of financing in deploying clean energy and energy efficiency, especially if states are interested in increasing the role of the private market in achieving overall energy savings goals. Policymakers and program administrators should develop standardized tracking metrics and evaluation frameworks across financing entities that include rigorous evaluations of energy savings.
Finally, green banks can add important tools to the toolbox. Because they leverage private capital and recycle public dollars, green banks offer an opportunity for states to expand energy efficiency and clean energy deployment. But they work best when they leverage existing resources. By partnering with utilities and program administrators to create a single package from a variety of services, including financing, rebates, and project guidance, green banks can break down more barriers than any one of these approaches could alone.
Interested in exploring a Green Bank or developing one for your state, county, or local jurisdiction? HB&C are market leaders in the formation of Green Banks and the blending of public and private capital to achieve increased deployment in energy efficiency and renewable energy. We can help you assess the potential for a Green Bank, or help you bring one to market. Call us today to chat!