You've heard of the Gold Rush. Get ready for the green rush. With nearly US$370bn (C$475bn) on the table, it's expected to secure some of the clean energy cash expected to flow out of the Inflation Reduction Act, which Democrats want to pass. The competition will soon take place south of the border. week.
The 'green bank' is one way the Biden administration is distributing billions of dollars to accelerate the deployment of solar, wind, geothermal and other renewable energy. is.
These are quasi-public projects aimed at attracting private investment in small-scale green energy projects such as residential solar installations, energy efficient building retrofits, and various forms of electrification. Institution.
They have been around for over a decade at the state and local level in the United States, Australia, and elsewhere. Canada plans to spend her $15 billion over three years on its own iteration known as theGrowth Fund. It has been criticized for not attracting enough investment and encouraging the privatization of public services.
US legislation will allocate $7 billion to green banks in states and $20 billion to green banks nationwide . Of that, $8 billion was allocated to low- to middle-income communities.
"One of their strengths is their interest in deploying clean energy, which they advocated on behalf of the Green Bank. It seeks to “de-risk” investments and reduce the initial cost of financing projects in order to bring more projects online faster, with the aim of helping achieve
Assuming Risk
"We take positions with a little more risk to give lenders a little more peace of mind," saysMontgomery, Rockville, Maryland. County Green BanksThis is one of approximately 22 Green Banks in the United States.
One of the reasons Green Bank can do it is one of the reasons Green Bank can do it, says Deyo. Evaluate the future energy savings your project will generate and factor them into your funding.
"Perhaps they [traditional banks] will not fully understand how energy savings will unfold," he said. "We are willing to take that risk position because we know it will come to pass."
The Green Bank uses so-called credit enhancements such as loan guarantees, loan loss reserves, and low interest rates to help businesses and citizens get the loans they need. be able to receive Get your project up and running.
"They will be more flexible about what they consider in creditworthiness and underwriting, and will be able to come up with products that serve their communities in unconventional ways." E2, or Environmental Entrepreneursrepresents environmentally friendly businesses and investors.
When they put capital into a project, they expect to be paid back. Although they are non-profit, they are not a funding agency and do not replace other incentives such as tax credits or rebates.
View | Inflation Act Includes EV Tax Credit:
Vehicles expanded to include EVs, batteries, and critical minerals produced in
Banks for Future Energy Savings
The Montgomery County Green Bank was established nearly seven years ago with $18 million in funding from the government. was put in. Through an annual allocation of 10% of the Maryland gas tax.
One of the projects it funded was his $1.5 million renovation of a 233-unit condominium building in Takoma Park.
The Homeowners Association approached the Green Bank after struggling to obtain bank loans to finance the energy-efficient upgrades it desired. Put in the rest of the boards.
"The condo association has very limited ability to borrow from traditional banks," said the president of the condominium commission that oversaw the project. said Tim Judson. The Condominium Association does not actually own real estate that can be collateralized in the way a home or condominium is collateralized when taking out a mortgage.
The Board will install energy efficient boilers, more efficient thermostats, a small natural gas heat and power system to provide some of the power and help heat the boilers and water tanks. I was able to. The
bank estimates that the upgrade will save about $70,000 in energy, and Judson says the project has already reached more than $90,000 a year. The building has moved from the 50th percentile to the 6th percentile in terms of efficiency, he said.
"We are more efficient than his 94% of the buildings in the country," said Judson, 51. He currently lives in Syracuse, NY, but in the building he holds one unit and still heads the board.
When electricity prices soared earlier this year, new heat and power systems could generate more electricity at home at a lower cost than otherwise. is ready. Buy from Utilities.
"Wealth is about long-term gain," he said Deyo. “It will take seven years to pay off that loan, and beyond that, these systems will last much longer. You will see it come back on its own as the cost of operations goes down.” 111}
Technical Expertise
Part of what Green Bank offers is staff with technical know-how to assess project feasibility. This is because Contractor of DC Flywheel Development is D. C. It was attracted when Solar financed his roof in a low-income rental building via Green Bank. Neighborhood northwest of town.
"Their level of basic knowledge is very high," she says Flywheel co-founder Jessica Pitts. “The lenders we approached had much more institutional knowledge in terms of how they would finance solar … what the revenue streams were and how it worked.
The project costs about $132,500 In dollars, a green bank is $80,000, a company is $26,000, and a city is renewable. An energy program that provides rest. Private lenders and the Green Bank will jointly finance a long-term loan that will allow Flywheel to oversee the project for the duration of her 15-year contract with the city and the property owner.
The roof produces an average of 25,000 kWh per year, enough power for 6 households. In this case, the supplying household is not actually inside the building. The electricity generated feeds the city's grid and is allocated to low- and middle-income residents through a program called Solar for All, which covers half of the utility bills.
Flywheel sells electricity to the city and generates revenue through solar energy credits. This credit sells for approximately $365 to $435 per megawatt hour in DC.
Neighbors are skeptical of solar
Lorenzo Barnes, 70, says flywheel installed a solar roof I have lived in the area for 25 years and have seen solar roofs. He climbs up from his apartment next door.
"There was no building like this here," he said.
He and one of his occupants of the building, who were home when the CBC visited, viewed the project with skepticism, He said he hopes the property owner will use some of the profits he is making. From leasing roof space to better maintain the property.
"Nobody knows this is a model his project," Burns said, pointing to the trash can in the front yard.
Allows for nationwide scale-up
Roofs of houses to farm fields , right down to church grounds, solar power is a big part of Green Bank funding. It may struggle to attract private capital, which tends to favor large-scale solar power.
"This is all day financing," said Pitts, referring to what is known as utility-scale solar power. "But that market often doesn't overlap with the regional installations that we do."
Skeptics say a truly viable project should be able to be financed through traditional banks, but proponents say It claims to bring investment to communities that do not attract green energy projects despite bearing the brunt of pollution and environmental degradation.
“Disadvantaged areas, such as low- to moderate-income or BIPOC areas, often seek out-of-pocket assistance to confirm the deployment of clean energy projects. It's the areas that need it most in terms of points," said Barber.
But the Green Bank remains vulnerable because it relies on government funding. The country's first Green Bank, located in Connecticut, has budget crises forced the state to cut funding, issuing bonds to raise capital After starting tohad to rebuild itself. Britain sold the Green Bank five years after her creation,and was criticized for missing its mandate.
See | Britons struggle to adjust to unprecedented heat:
The UK hit its all-time high on Tuesday after the heat topped 40 degrees Celsius. Extreme heat is how countries should prepare for a warmer future.
If the state-run Green Bank moves forward, proponents say it will allow for a wider range of projects than state banks can currently finance. in remote communities.
"There is only a finite amount of time in which we have to make huge investments in clean energy," Barber said. "We are talking about a huge opportunity to expand electrification, and the national Green Bank will make it possible."
