Reinvestment Fund, an organization that promotes socially and environmentally responsible development, recently announced the launch of a new Clean Energy Fund, which will provide financing for small and mid-sized projects implementing energy efficiency, renewable energy and other clean energy technologies that otherwise have limited access to traditional capital markets.
Capital for the Fund comes from a subsidiary of MetLife, Inc., which is providing $10 million in debt and Reinvestment Fund, which is investing $2.5 million.
“This new Fund allows us to channel affordable, longer-term capital to small and mid-sized energy retrofit projects nationwide that will generate valuable energy savings year after year as well as improve health and environmental conditions in the communities we serve,” said Don Hinkle-Brown, president and CEO of Reinvestment Fund.
The Fund has committed its first loan to Affordable Community Energy Services Company (ACE) to perform comprehensive energy efficiency and water conservation projects for Mercy Housing in California, the nation’s largest nonprofit owner of low-income housing. The $6 million project will benefit 6,000 affordable housing units in 90 multifamily residential buildings in California. The portfolio of energy retrofits installed and managed by Bright Power, ACE’s energy consultant and general contractor for the projects, which will save Mercy Housing each year an estimated 2.1 million kWhs of electricity; 32 million gallons of water and 23,000 therms of natural gas.
“The Clean Energy Fund will accelerate the availability of energy-focused improvements for smaller- and mid-sized projects that represent so much of the built environment around us,” said Matt Sheedy, Head of Tax Credits, Social Investments at MetLife Investment Management.
“This Fund is a giant step forward on the path of decarbonizing our built space, which accounts for roughly one-third of US carbon emissions,” said Peter Goldmark, the former president of the Rockefeller Foundation and former head of climate and air programs for the Environmental Defense Fund. “For the first time it provides small businesses a large-scale financing mechanism aligned with the practical incentives that govern the behavior of local building owners and retrofit installers.” Goldmark is also the founder of the New Energy Model Organization (NEMO), a startup dedicated to launching a national built space decarbonization program.
The new Clean Energy Fund will offer loans of up to $3 million with terms out to 15 years. The Fund’s primary focus will be on making capital available to finance energy retrofit projects backed by Energy Savings Agreements and clean energy generation projects backed by Power Purchase Agreements, as well as supporting portfolios of smaller clean energy projects.
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