The New York State Energy Research and
Development Authority (NYSERDA) announced
a new partnership that will expand innovative
clean energy project financing to all of New York
state for commercial, industrial and multifamily
buildings to help them become more competitive
and cost effective by decreasing their energy
costs.
Through the partnership, NYSERDA is providing
approximately $1 million to the Energy
Improvement Corporation (EIC) to jump start
its Energize NY Finance program in the state
over the next two years.
The Energize NY Finance program uses
Commercial Property Assessed Clean Energy
Finance (PACE) and property tax laws to provide
long-term, market-rate financing for clean
energy commercial and multifamily building
improvements. Combining this innovative financing
mechanism with community outreach helps
to overcome the two most significant barriers
to expansion of clean energy projects – lack of
market knowledge and lack of financing capital.
“New York state businesses now have access
to another innovative financing option, as the
State transforms markets and removes barriers
to clean-energy project development,” said John
B. Rhodes, president and CEO of NYSERDA.
“This program dovetails with other financing
programs such as the NY Green Bank, and will
make energy-saving projects more affordable for
business owners and drive increased investment
in clean energy.”
Energize NY financing will provide up to 100
percent of the cost of a clean energy upgrade
and offer fixed rates and long-terms to qualified
properties. Financing is repaid over time through
the improved property’s local property tax bill.
Similar to a sidewalk improvement or façade improvement district, capital provided under the
Energize NY financing is secured by a property
tax lien on the property, so capital can be raised
from the private sector with no government
subsidy.
Energize NY Finance is available statewide.
Currently, Orange County and 12 towns and cities
in Westchester County have passed the required
local law with 20 more counties and cities in
Western New York, Central New York, Capital
Region, Long Island and Mid-Hudson working
towards passage.
Funding will be used over the next two years to
promote the program, build a pipeline of projects
and spur participation by other municipalities
and counties. After that, EIC is expected to use
future revenue generated from Energize NY
Finance to support its programs.
EIC is a not-for-profit local development
corporation that works in partnership with municipalities
and other stakeholders to transform
the market for comprehensive clean energy
upgrades.
EIC is partnered with Bank of America Merrill
Lynch and First Niagara to provide capital and
the NY Green Bank has issued a letter of credit
to support EIC’s bonding activities.
Officials said that with this initiative, New
York’s role as a leader and first mover in shaping
the future of energy remains firmly in place.
By developing innovative market solutions,
the state is delivering on Gov. Andrew Cuomo’s
commitment to transform the energy industry
into a more resilient, clean, cost-effective and
dynamic system.
Municipalities interested in becoming an
EIC member or property owners interested in
participating, please call 914-302-7300. Find out
more at Commercial.EnergizeNY.org.