The Connecticut Green Bank (formerly the Connecticut Clean Energy Finance and Investment Authority) and Hannon Armstrong recently reached an agreement that will increase the deployment of energy efficiency and other clean energy projects throughout Connecticut's commercial and industrial sector.
Under the terms of the agreement, Annapolis, Md.-based Hannon Armstrong will provide access to up to $100 million in funding for green energy projects for commercial and industrial buildings and businesses. This agreement is the largest facility ever with a state green bank, according to Hannon Armstrong.
The agreement supports the Green Bank's Commercial Property Assessed Clean Energy (C-PACE) program, which provides commercial, industrial, nonprofit and multifamily property owners access to affordable, long-term financing for meaningful energy upgrades to their buildings. The Green Bank says it has closed over $50 million in C-PACE projects and has a growing pipeline that represents nearly $50 million more in already approved projects.
Through the partnership, Green Bank will be able to effectively leverage private capital while providing Hannon Armstrong with the ability to access a rapidly growing class of assets, according to the firm.Â
‘This agreement will help us streamline the approval process for commercial loans and ensure a reliable source of capital for our businesses and institutions,’ explains Bryan Garcia, president and CEO of Connecticut Green Bank. ‘But more importantly, this transaction demonstrates that private investors are ready to put their capital behind green energy projects in the commercial sector.
"The Green Bank can leverage this infusion of private capital to accelerate the growth of green energy while putting fewer ratepayer dollars at risk. That establishes a marketplace where Connecticut businesses can thrive and allows the Green Bank to further leverage its assets," Garcia continues.
Jeffrey Eckel, president and CEO of Hannon Armstrong, adds, "Investing in energy efficiency and clean energy projects through the Connecticut Green Bank's C-PACE program provides Hannon Armstrong a new, scalable channel partner to cost-effectively deploy capital. We applaud the Green Bank's leadership in developing this market.’