Enhancing Clean Energy Finance Capabilities Among Community-Based Financial Institutions

Clean energy—whether through energy efficiency or through renewable energy like solar and geothermal—is a powerful tool for economic development, community resiliency, and energy affordability and reliability for communities. But that is not all: clean energy projects provide a strong business opportunity for investors. Clean energy finance is an investment in proven technology, with decreasing costs and improving project economics in most markets.

In many respects, clean energy finance is a mature market, with a wide ecosystem of investors providing a mix of debt, equity, and tax credit equity in the market. However, community-based lenders such as Credit Unions, Community Development Financial Institutions, and Community Banks, have a unique role to play within this market. Not all households are participating equally in the move to clean energy, and there is a real risk that many populations will be left behind, including low-income families, rural communities, and people of color. Community lenders have the combination of deep community relationships and underwriting experience that can help make clean energy more affordable and accessible to communities everywhere.