Contractor Financing Workshop Sponsors: Build It Green EGIA Mendocino College Savings Bank Of Mendocino Umpqua Bank North Coast Builders Exchange USDA

Introduction to Financing Workshop Project of Energy Upgrade California Renewable Energy Development Institute serving Lake and Mendocino Counties Ecology Action statewide program administration Sponsors for the workshop include Mendocino College Build It Green Electric Gas Industries Association North Coast Builders Exchange Savings Bank of Mendocino Umpqua Bank USDA CHF

Energy Upgrade California Overview Partnership between the California Energy Commission and Public Utilities Commissions Collaboration with the local city and county governments, investor-owned utilities and municipally-owned utilities Vision: Create a sustained home performance industry and transform the market for energy efficiency existing home retrofits

Paths to Participation Basic Energy Upgrade $1,000 Rebate Advanced Energy Upgrade $1,250 to $4,000 Rebate

Basic Energy Upgrade Approach Basic Energy Upgrade Assessment Packaged set of basic measures – Whole house air sealing to BPI Standards – Attic insulation upgrade to R-38 or greater – Duct testing and sealing to BPI Standards – Combustion safety (CO monitor and BPI Building Analyst testing) – Hot water pipe insulation – Thermostatic Shower Shut-off Valve Project completed by a participating Energy Upgrade Contractor

Advanced Energy Upgrade Approach Comprehensive diagnostic assessment Contractor-developed home energy upgrade solution package – customized work scope Energy savings verified through test-in/test-out energy modeling – HERS II procedures Certified Contractors managing project

Energy Financing Basics Utility energy bill is a form of financing and is what ratepayers are used to Customer’s common complaint is “I can’t afford energy efficiency or solar” Contractor’s common comment is “My customers don’t need financing” Offer energy efficiency and renewables with financing for higher sales volume Financing Toolbox – no one perfect loan for everyone Secured financing offers longest terms and lowest interest rates Unsecured financing offers no lien on property with reasonable rates and terms Subsidized financing can offer very low rates and enhanced credit approvals Loans are tailored for residential, commercial and institutional sectors Cash rebates and tax incentives can reduce initial costs

Residential Financing Conventional Mortgage – fixed and variable rate with 15 to 30 year terms Issues with real property values and credit tightening Lowest rates in a generation Energy Efficiency Mortgage Home Equity Line of Credit – variable rate and term Unsecured Energy Loan – EGIA CHF Energy Retrofit Loan CDBG Rehabilitation Loan Unincorporated Mendocino – CDC / Fort Bragg – City of Fort Bragg

Subsidized Financing CHF Home Energy Retrofit – Lake County 0% / Mendocino 3% CDBG Home Rehab Loan – Fort Bragg / Unincorporated Mendocino Energy Savings Performance Contracting and Power Purchase Agreements Operating Lease – Solar primarily with Lessor using tax credits PG&E On-bill 0% commercial financing – gas rate tariff SAFEBIDCO – Small business and non-profits California Energy Commission – Ag / Non-Profits / Schools & Hospitals Property Assessed Clean Energy (PACE) Loans ABx1 14 Energy Upgrade Financing – loan guaranty SBA CDC / 504 and 7(a) for business financing Economic Development and Financing Corporation - RLF

REDI Contact Info Keith Rutledge – REDI Programs Director office cell Terry Phenicie – REDI Programs Manager office cell

Institutional Financing Public Finance – Bond measures USDA Community Facilities Energy Savings Performance Contracting and Power Purchase Agreements Operating Lease – Solar primarily with Lessor using tax credits PG&E On-bill 0% commercial financing – gas rate tariff SAFEBIDCO – Agencies and non-profits California Energy Commission – Non-Profits / Schools & Hospitals