May 18, 2017

Spring Newsletter

Greetings from NY Green Bank

It has been a busy few months for NY Green Bank - including closing six new transactions in the first quarter of 2017, on the heels of a very strong finish to 2016.  We have now made over 20 investments, putting $346.1 million to work since the third quarter of 2015 and are continuing to develop our reputation as a sustainable infrastructure investor of choice in New York.

We've recently launched two new investment solicitations, which complement our original and ongoing investment RFP, by streamlining the application process for certain project types. Through these new targeted opportunities we expect to facilitate ground-mounted solar developments through the provision of construction and back-leveraged financing and, separately, renewables/energy efficiency upgrades by property owners (both can be found on our website). We are delighted with the momentum of clean energy financing activity in New York and appreciate the countless conversations, proposals, and insights you have shared with us as active participants in New York's clean energy economy. As always, if you are working on a clean energy project that could benefit from NY Green Bank participation, please contact us.  

In our latest newsletter, we provide our most recent portfolio and impact figures.  We have also highlighted a few of the transactions we've closed in the energy efficiency sector - demonstrating how our financing presents scalable solutions for greater clean energy deployment across New York State.

There still remains a lot to do to achieve the State's aggressive clean energy goals set by Governor Cuomo, and we're here to work with you to help drive even greater clean energy project development across New York State.  

Alfred Griffin

NY Green Bank
A Division of NYSERDA

Recent Highlights

Current Portfolio & Pipeline

As reflected in our new Quarterly Metrics Report, private sector interest in working with NY Green Bank (NYGB) continues to reach new heights, after setting an all-time high for investment proposals in the third quarter, the final quarter of 2016 set an even higher bar. As of March 31, 2017 NYGB has received proposals for NYGB investment totaling $2 billion.

In addition, our active pipeline (i.e., transactions where there is agreement in principle between parties and momentum to move the transaction toward final execution and closing) includes $591.7 million in new transactions. More information on NYGB's investments can be found on the Transaction Profiles page of our website.

Launching Two New Open Solicitations

In March, 2017, NYGB issued two new investment solicitations, or Requests for Proposals (RFPs), which complement the original and ongoing investment RFP by streamlining the application process for certain project types. RFP 7 is targeted towards developers seeking construction and/or back-leveraged financing for C&I solar projects, and RFP 8 is targeted at commercial and multi-family building owners, plus clean energy contractors/service providers focused on such projects, who seek to finance the purchase of energy efficiency and/or renewable energy assets. These new solicitations are offered while NYGB continues to explore opportunities across the broader spectrum of clean energy financing markets.

To view the investment solicitations, please see the Propose an Investment page on our site.

Spotlight on Energy Efficiency

Energy efficiency improvements deliver savings to customers and a stable return on investment. While there is increasing appetite in the market for individuals or organizations to pursue energy efficiency projects, traditional capital providers are often substantially unfamiliar with the performance of these projects(from both the technology and credit perspectives) or otherwise unwilling to provide the longer-term financing such projects require. Since inception, NYGB has structured innovative solutions to these issues to not only provide financing to individual projects but to drive greater market volume and liquidity, including but not limited to:

Long-Term Leasing for School District Deep Retrofit: The Northport Project includes lighting retrofits, building envelope improvements, energy management systems, water conservation units, and ventilator refurbishments to nine schools and an administrative building. It is expected to save the District approximately $1.1 million per year, with a portion of those savings used for lease payments and the remainder going directly to the District. This project was only possible with the investment from NYGB, which provided $8.9 million, that was combined with a $4.2 million co-investment from a subsidiary of Signature Bank.

Financing Energy Efficiency in Low-to-Moderate Income Housing Developments: The New York City Housing Authority (NYCHA) Project will see energy improvements, primarily through the replacement of conventional lighting equipment with cleaner, more efficient LED lighting, in 18 public housing developments in New York City. The $11 million bridge loan will help generate savings of 10% - 15% on current annual energy expenses for the building owner.

Investing in Energy Efficiency for Age Care Facilities: The Hebrew Home Project will finance the installation of a combined heat and power system at the Hebrew Home for the Aged at Riverdale ("HHAR"), in New York City as part of a larger arrangement and aggregation strategy. NYGB is providing $12.2 million in the approximately $14 million tax-exempt equipment lease, which will finance energy improvements that will replace existing infrastructure at HHAR, saving an estimated $1.6 million annually by replacing current infrastructure with cleaner, more efficient alternatives.