City Energy Project: How Cities Can Educate Lenders on Energy Efficiency

Despite the benefits of energy efficiency for property owners, there is still only limited financing readily available for energy efficiency. While there are innovative niche financing solutions, such as PACE (Property Assessed Clean Energy) and performance contracting structures, more traditional commercial lending activities need to scale up to enable broader investment in efficiency. Cities can play an important role in educating lenders about the benefits and importance of offering and providing customers with financing options for energy efficiency improvements. This fact sheet provides an overview on how city officials can help educate lenders about the benefits of energy-efficient buildings and how it can relate to underwriting standards.

This resource is part of the City Energy Project Resource Library. Launched in 2019, the library is the culmination of 6+ years of work on the ground in 20 U.S. cities to reduce energy use in large buildings. The City Energy Project is a joint project of IMT and the Natural Resources Defense Council (NRDC). For more information, visit www.cityenergyproject.org.