By Yiqing Zhao
Great news for clean energy, renewable energy and energy efficiency projects: NY Green Bank is here to help financing, firmly supported by NYSERDA.
Open for business since last February, the state-sponsored fund NY Green bank is a division of NYSERDA. As New York’s very own energy expert, NYSERDA promotes technological innovation in building efficiency and envisions a clean energy future.
NY Green Bank’s mission is to advance and expand clean energy (including energy efficiency and renewables) from a financing perspective, in a self-sustaining manner. Currently, the biggest obstacles that prohibit most great projects from fruition are their inaccessibility to financing in the traditional market. Among them, many small & medium-size businesses don’t stand a chance for getting financed.
This is about to change by the NY Green Bank:
Hence, “the Green Bank is in the business of partnering with other lending and other capital market institutions, other financial actors, such as insurance companies or banks and getting them into the business by partnering with them and saying look, we can show you how this work,” explained John Rhodes, NYSERDA President and CEO. When fully capitalized, NY Green Bank expects to have $1 billion on the balance sheet and a projection of $8 billion of additional private sector investment in clean energy projects over the next ten years.
Market-focused and market-responsive, NY Green Bank provides financial support including credit enhancement (such as loan loss reserves and loan building), project aggregation, wholesale leveraging on lowering interest rate, and securitization amidst its pushing for various benign public-private partnerships.
Having been open for only a short time, NY Green Bank “already have seven deals ready to go that are going to commit most of [their] initial capitalization across a range of projects for clean energy, renewable energy and energy efficiency across the state and leveraging upwards of $600 million from those financial service partners,” said Rhodes.
NY Green Bank is starting to tremendously benefit efficiency-minded building owners and clean energy/efficiency/renewable contractors. With a mission to accelerate clean energy deployment in New York State by working in partnership with the private sector to transform financing markets, it’s time to learn to work with them.