The City of Sacramento and Ygrene Energy Fund, a provider of clean energy finance programs for local governments, have partnered for Clean Energy Sacramento, a public-private partnership, which provides funding to local property owners for energy efficiency, renewable energy and water conservation upgrades at no up-front cost.
Clean Energy Sacramento offers energy financing for both commercial and residential buildings, providing 100 percent private funding for energy retrofits with no public money. The program will help achieve Sacramento’s goal of reducing energy use 15 percent by 2020.
Both commercial and residential properties have been approved for immediate funding under the program, including a spotlight project to upgrade to a more efficient chiller at 520 Capitol Mall, located in a prominent downtown office. The $513,000 project will be installed by Airco Mechanical, a certified Ygrene contractor, and is projected to reduce costs by $47,000 a year for 25 years.
Clean Energy Sacramento launches with $22 million of prequalified projects in the pipeline, with more than 150 local contractors ready to begin work across the city.
Under Clean Energy Sacramento, property owners repay capital costs for clean energy upgrades and retrofits via property taxes over a period of up to 20 years. The unique property tax payback mechanism makes it possible for both the efficiency savings and investment to transfer with the property upon a sale, a significant benefit for property owners. All commercial properties are projected to deliver financial benefits that exceed additional property taxes.
Ygrene also announced the opening of its Energy Center in Sacramento where it will host contractor trainings, energy efficiency workshops and partner meetings, as well as provide information on green products and hold consultations about participating in Clean Energy Sacramento.
In October 2012, Ygrene announced a similar arrangement with the City of Atlanta to provide financing for the Clean Energy Atlanta program.