Clean Energy Sacramento launched last week - the first privately funded clean energy financing model in the US for both commercial and residential buildings.
A partnership between the City of Sacramento and Ygrene Energy Fund, it's expected to cut energy consumption in the city 15% by 2020, create thousands of jobs and boost property values.
The beauty of the model is that Ygrene forms an "energy district" where property owners can get financing without having to scout around for loans. With no upfront cost, public and private property owners will be able to get energy efficiency and water conservation upgrades and add renewable energy.
It's based on the very popular and successful PACE program, which recently financed the upgrade at San Francisco's Historic Pier 1.
"Not only are we making Sacramento a cleaner and healthier place to live, we're also putting Sacramento's hard-hit construction business back to work and revitalizing our economy at zero cost to taxpayers," says Sacramento Mayor Kevin Johnson.
Clean Energy Sacramento launches with $22 million of prequalified projects in the pipeline and over 150 trained local contractors ready to begin work.
Every $100 million invested via the partnership will create $250 million in economic activity, $25 million in tax revenue and 1500 green jobs, according to an analysis by ECONorthwest.
Under the program, property owners pay for upgrades via their property taxes over a period of up to 20 years, which means the efficiency savings and investment transfers with the property if it's sold.
The upgrades are expected to deliver financial benefits greater than any additional property taxes, delivering demonstrable benefits to property owners.
The Ygrene Energy Center opened at the launch, which will host contractor trainings, energy efficiency workshops and information on cutting-edge green products.
Ygrene is bringing its privately funded model to other states later this year, establishing the Clean Energy Green Corridor in Miami-Dade County, Florida and Clean Energy Atlanta in Georgia.