SACRAMENTO, Calif., Oct. 6, 2011 /PRNewswire/ -- Ygrene Energy Fund, a leading provider of energy retrofit programs for local governments, today announced it has signed a contract with the City of Sacramento. Under the deal, Ygrene will provide no-risk administration of the city's first-ever property assessed clean energy (PACE) program for commercial building owners. Approved in a unanimous city council vote, Ygrene was selected for its owner-preferred financing model, which facilitates energy efficiency and renewable energy improvements with minimal upfront capital expenditure or credit requirements for the building owner. The Sacramento program is Ygrene's second engagement with a municipality in the past month, following a recent agreement in Florida's Miami-Dade County. The City of Sacramento's historical vote opens up a pool of unlimited project funding for owner-preferred financing.
Now legislated in 25 states and the District of Columbia, PACE programs enable the advancement of clean energy by commissioning building energy retrofits to be financed over long term repayments via an annual assessment on property tax bills. Energy savings offset the cost of the projects for property owners as they enjoy reduced energy use, while cities like Sacramento will generate local jobs, stimulate the local economy and achieve environmental goals.
Ygrene Energy Fund leads the new PACE Commercial Consortium (PCC), which includes major finance, energy consulting and energy savings insurance companies. Through the consortium, Ygrene Energy Fund partners with global financier Barclays Capital, energy services provider Lockheed Martin, and energy risk management and insurance provider Energi Insurance Services, in conjunction with its parent company and world's third largest re-insurer, Hannover RE.
"Thanks to a proactive city council and the vision and leadership of Mayor Kevin Johnson, this program will bring 1,500 jobs and economic stimulus to the city," said Dan Schaefer, Ygrene Energy Fund president. "PACE programs are a win-win, both for Sacramento and for property owners. Energy improvements increase buildings' values, save operating costs, support local job growth and help to reach the city's greenhouse gas reduction goals. So far more than a dozen local governments have recognized the economic and sustainability model that Sacramento will be implementing with Ygrene, and we expect more to follow suit."
Ygrene projects that every $40 million spent on PACE projects results in a $100 million inflow to local businesses.
"The Property Assessed Clean Energy (PACE) Consortium, led by Ygrene, is the missing piece in the jigsaw for successfully implementing energy efficiency measures at scale in Sacramento," said Murat Armbruster, Senior Advisor of the Carbon War Room, an independent non-profit founded by Sir Richard Branson and Virgin Unite. "Ygrene offers a bold approach that focuses on long term, sustainable solutions for financing clean energy. We're already seeing interest from numerous cities and counties across North America that seek to replicate this smart city blueprint in their areas."
About Ygrene Energy Fund
Ygrene Energy Fund, headquartered in Santa Rosa, California, is the leading developer and administrator of Property Assessed Clean Energy (PACE) financing programs in the US. PACE is an innovative structure enabling property owners to finance energy savings improvements. Assembled by the Carbon War Room, Ygrene leads "The Commercial PACE Consortium" a coalition, of leading financial, energy efficiency and climate change organizations to deliver no-cost, turnkey PACE financing on behalf of municipal governments. Founding members include Barclay's Capital, Lockheed Martin, and Energi. Learn more at www.ygrene.us.
SOURCE Ygrene Energy Fund