By Joshua Ayers, Senior Editor
New York—The New York State Energy Research and Development Authority (NYSERDA) has announced a partnership with the Energy Improvement Corporation (EIC) that will enable Commercial Property Assessed Clean Energy (PACE) financing to direct low-cost capital toward multifamily and business projects across the state. The financing will help these entities become more competitive by helping reducing energy costs.
“New York State businesses now have access to another innovative financing option, as the State transforms markets and removes barriers to clean-energy project development,” says John B. Rhodes, president and CEO, NYSERDA. “This program dovetails with other financing programs such as the NY Green Bank, and will make energy-saving projects more affordable for business owners and drive increased investment in clean energy.”
NYSERDA will provide about $1 million to EIC to stimulate its Energize NY Finance program over the next two years. The Energize NY Finance program utilizes PACE and property tax laws to provide long-term, market-rate financing to allow business and multifamily property owners to make energy-saving building improvements. The combination of this financing method and community outreach helps property owners overcome the lack of knowledge and lack of financing capital for undertaking clean energy projects.
Energize NY financings can provide up to 100 percent of the cost of a clean energy upgrade and offers fixed rates and long-terms to qualified properties. That financing is repaid over time via the improved property’s local property tax bill. Capital provided under the Energize NY financing is secured by a property tax lien on the property so capital can be raised from the private sector with no government subsidy.
The program, Energize NY, is available statewide with Orange County and 12 towns and cities in Westchester Count having already passed the required local law. Twenty more counties and cities in the state are currently working toward passage.
Funding for these projects will be used over the next two years to promote the program and after that time period, EIC will be expected to use future revenue generated from Energize NY Finance to support its own programs.