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Groundbreaking clean energy financing program will help Californians electrify

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For Immediate Release August 15, 2024

Media Contact:
Robin Tung, Building Decarbonization Coalition
robin@buildingdecarb.org 

Pamela Leonard, Silicon Valley Clean Energy
pamela.leonard@svcleanenergy.org

Groundbreaking clean energy financing program will help Californians electrify
Silicon Valley Clean Energy to pilot an equitable financing field study that protects consumers while scaling electrification in California by expanding access to clean energy technology and upgrades.

(SUNNYVALE, CA) – A groundbreaking financing pilot with strong customer protections that makes home electrification more accessible for Californians was approved by the Silicon Valley Clean Energy (SVCE) Board of Directors in a unanimous vote. At scale, clean energy financing can support 6 million low- and moderate-income Californians–40% of the state’s population–in accessing clean, electric appliances like heat pumps for home cooling. SVCE is launching this pilot to meet the immediate clean energy needs of its customers, develop the groundwork for a potential program expansion, and provide lessons learned as the California Public Utilities Commission (CPUC) weighs a joint utility proposal to offer a similar model of financing statewide. 

“Silicon Valley Clean Energy is committed to ensuring that our communities can benefit from healthy homes,” said Monica Padilla, CEO at Silicon Valley Clean Energy. “This equitable financing pilot will deliver clean air, protect the health of our residents, and help California scale electrification as the state advances towards its clean energy future.”

The SVCE pilot will make clean, electric appliances and home upgrades accessible for low- and moderate-income households who may not qualify for certain low-income programs or higher-income tax credits. The finance offering removes the upfront cost barrier of the appliances by providing 0% interest loans for the home upgrades that are repaid over approximately a decade through the utility bill. The repayment charges will be offset by savings across gas and electric bills.

SVCE’s pilot is also designed with strong customer protections for participants, including bill monitoring and customer support for equipment operation and to ensure that energy savings are realized. The pilot is expected to serve about 200 homes with a combination of HVAC heat pumps, heat pump water heaters, energy efficiency, and solar and battery storage.

“The pilot from Silicon Valley Clean Energy is the kind of clean energy innovation that Californians need as the state plans to scale home and neighborhood electrification,” said Beckie Menten, Senior Policy and Regulatory Specialist at the Building Decarbonization Coalition. “Prioritizing California’s low- and moderate-income households in the clean energy transition means ensuring affordability, expanding cooling and health benefits, and protecting tenants and utility customers. This pilot is a groundbreaking step in the right direction.”

Learnings from the SVCE pilot will help inform tariffed on-bill (TOB) financing, also known as inclusive utility investments (IUI), for energy upgrades, which is currently being considered by the CPUC. In the TOB financing model, the utility investment, unlike a traditional bank loan, is tied to the utility account and not the customer. This means that the financing is not contingent on an applicant’s credit history or other qualifications and allows tenants to benefit from the program without the obligation for repayment upon moving out from a building. 

SVCE’s pilot program, if scaled, has the potential to help California accelerate building decarbonization and make progress towards its clean energy future. The pilot is slated to launch in early 2025.

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Silicon Valley Clean Energy is a not-for-profit, community-owned agency providing clean electricity from renewable and clean sources to more than 275,000 residential and commercial customers in 13 Santa Clara County jurisdictions. As a public agency, net revenues are returned to the community to keep rates competitive and promote clean energy programs. Silicon Valley Clean Energy is advancing innovative solutions to fight climate change by decarbonizing the grid, transportation, and buildings. Learn more at svcleanenergy.org.

The Building Decarbonization Coalition (BDC) aligns critical stakeholders on a path to transform the nation’s buildings through clean energy, using policy, research, market development, and public engagement. The BDC and its members are charting the course to eliminate fossil fuels in buildings to improve people’s health, cut climate and air pollution, prioritize high road jobs, and ensure that our communities are more resilient to the impacts of climate change. Learn more at www.buildingdecarb.org.