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California Alternative Energy and Advanced Transportation Financing Authority

GoGreen Home: Additional Funding to Expand Financing Eligibility

Update: October 2024

CAEATFA has received notice as of October 9, 2024, that all TECH funds have been exhausted and there will be no increase in the allowable cap for GoGreen Home projects. This announcement serves as a 10-day notice that measures originally covered by TECH funding within POU electric territory are no longer eligible for financing through GoGreen Home. 

Concurrently, CAEATFA will begin incorporating funding provided by the California Energy Commission (CEC) through the Equitable Building Decarbonization (EBD) Program.  The EBD funding will support many of the same measures that were previously eligible for financing through the agreement with TECH while expanding coverage to include electric vehicle chargers, solar PV paired with battery storage systems, and standalone battery storage. This funding will allow CAEATFA to continue offering borrowers within POU electric territory access to GoGreen Home financing for a multitude of electric-only measures.   

Please see below for more information regarding CAEATFA’s funding agreement with the CEC as well as a complete list of eligible measures.

Update: June 2024

On May 10, 2024, an amendment to the MOA between CAEATFA and TECH came into effect, providing an additional $600,000 in funding for credit enhancements and administrative support for heat pump installation projects for properties that receive gas service from an investor-owned utility (IOU) and electric service from a publicly owned utility (POU). With the exception of cool roofs, EV chargers, battery storage for pre-existing solar systems, and solar PV + battery storage systems, all other electric measures remain eligible for these properties under the guidelines of previous TECH funding.

More information about the funding relationship with TECH and this amendment is below.

Update: November 2023

On November 4th, 2023, an amendment to the MOA between the GoGreen Home Energy Financing Program and the Technology and Equipment for Clean Heating (TECH) Initiative will come into effect. This amendment will exclude the financed cost of a cool roof electric measure from being eligible for TECH credit enhancement funds if the measure is approved for financing after this date. This only applies to projects at a property receiving gas service from an investor-owned utility (IOU) and electric service from a publicly owned utility (POU). Friday November 3rd, 2023, is the last day that GoGreen Home Lenders may approve for financing the installation of a cool roof at properties receiving this combination of IOU/POU service. GoGreen Home Contractors should likewise adjust their sales planning with this deadline in mind. All other financed electric measures at these properties remain eligible for credit enhancement.

More information about the funding relationship with TECH and this amendment is below.

Update: October 2023

As of October 31, 2023, additional funding for the GoGreen Home Program will be available through a funding relationship with the City of Palo Alto Utilities (CPAU). This funding will expand the equipment and related costs eligible for credit enhancements through GoGreen Home to all CPAU customers, providing new options for financing energy efficiency upgrades and decarbonization for more California residents.

CAEATFA previously received additional funding from the Technology and Equipment for Clean Heating (TECH) Initiative in February 2022; this funding relationship continues and is not affected by the addition of CPAU funding.

The expansions facilitated by TECH and CPAU funding will reduce complexity for participating GoGreen Home lenders and contractors, allow GoGreen Home to serve more California customers, and ultimately realize greater energy savings and progress toward building energy efficiency and decarbonization goals.

More information about the funding relationships with TECH and CPAU is below.

Background

The California Hub for Energy Efficiency Financing (CHEEF) was originally authorized by the California Public Utilities Commission (CPUC) and funded through Public Purpose Program (PPP) funds paid for by ratepayers of the California IOUs. The California IOUs are Pacific Gas & Electric, Southern California Gas Company, San Diego Gas & Electric Company and Southern California Edison Company. The funds are used for administration as well as to offer credit enhancements to participating lenders that enable them to offer more advantageous terms to borrowers for energy efficiency loans than they otherwise could. CPUC rules and the source of funding have resulted in CAEATFA regulations for the GoGreen Financing programs that restrict participation to customers of the IOUs. Additionally, the regulations have limited the eligibility of energy efficiency measures for which finance companies can receive a credit enhancement, as well as the loan principal for which lenders can receive reimbursement in the event of a default, to those utilizing a fuel provided by an IOU.  This has made impactful but costly energy efficiency upgrades like heat pumps virtually inaccessible for the millions of Californians served by a gas IOU but an electric POU. These limitations have also resulted in a web of eligibility complexity based on utility jurisdiction that frustrates contractors and lenders, and which CAEATFA believes has hampered participation in GoGreen Home.

(Follow the links for more information about GoGreen Home and the California Hub for Energy Efficiency Financing, or CHEEF.)

In August 2021, in response to CAEATFA seeking solutions that would enable simpler programs with more uniform eligibility across the state, the CPUC issued Decision 21.08.006.  This decision authorized CAEATFA to incorporate additional sources of funding into the CHEEF, beyond the PPP IOU ratepayer funds, and to utilize these funds to expand eligibility to non-IOU customers and/or expand the types of measures for which lenders are eligible for a credit enhancement to non-IOU fuel utilization measures.

Per GoGreen Home Program Regulations, if additional funding becomes available from a source outside of the PPP IOU ratepayer funding, CAEATFA will invite stakeholders to join an Interested Parties list as well as publish an explanation of how the funding expands eligibility for GoGreen Home.

Interested Parties List

Sign up to join the “CHEEF Additional Funding” Interested Parties list and be notified when GoGreen Home has access to additional funding to expand financing eligibility.

CAEATFA and CEC Agreement to Collaborate

About the California Energy Commission

The California Energy Commission is the state’s primary energy policy and planning agency.  Established under the Warren-Alquist Act of 1974, the CEC is committed to reducing energy costs, curtailing greenhouse gas emissions, and ensuring a safe, resilient, and reliable supply of energy.  The agency is at the forefront of efforts to lead California to a 100 percent clean energy future for all.  For more information, please visit the CEC website.

The CAEATFA and CEC Agreement

CAEATFA and the CEC entered into a grant agreement on September 5, 2024.  Through this collaboration, the CEC will allocate $18 million to support GoGreen Home lenders with Loan Loss Reserve contributions that create financing opportunities for Californians making energy improvements to their homes.  A further $9.9 million will be made available for an Interest-Rate Buydown (IRBD) program to assist designated Low-Income Households to undertake energy efficiency upgrades.  The IRBD portion will also include $500,000 earmarked to support Microloans of under $5,000.

This funding is made available through the CEC’s Equitable Building Decarbonization Program which in turn receives funding from California Climate Investments, an initiative of the California Air Resources Board. 

Incorporation of the CEC funds will allow CAEATFA to expand GoGreen Home financing options more broadly across the state and ensures continued eligibility for most electric projects that were previously funded through the TECH initiative.

Funder Criteria

The CEC is providing funding for credit enhancements to lenders for projects that:

  • Upgrade a property served by a gas Investor-Owned Utility (IOU) and electric Publicly Owned Utility (POU)
  • Contain costs for the following:

CAEATFA and CPAU Agreement to Collaborate

About the City of Palo Alto Utilities

The City of Palo Alto Utilities offers residents and businesses a full suite of City-owned and -operated utility services including electricity and natural gas. CPAU encourages customers to consider electrification, a shift from fossil fuels to electricity, for space and water heating, transportation and cooking. For more information on CPAU, please visit the CPAU webpage.

The CAEATFA and CPAU Agreement

CAEATFA and CPAU entered into a Memorandum of Agreement (MOA) on September 11, 2023. Through this collaboration, CPAU will provide funds for credit enhancements as well as administrative support for GoGreen Home–financed projects for properties receiving service from CPAU. CPAU will provide a maximum of $300,000 toward the collaboration with CAEATFA and the GoGreen Home program. CPAU’s commitment to contribute funds for credit enhancement will expire on September 11, 2025, although CAEATFA and CPAU may mutually agree to extend the Agreement for three additional years, or to amend the Agreement to adjust Program funding in the event CPAU customer participation exceeds estimates.

Without incorporation of CPAU funding, consistent with guidelines set by the CPUC, the GoGreen Home Regulations require that eligible properties must receive fuel from an IOU. As CPAU customers receive both gas and electricity from CPAU, they have previously been ineligible for GoGreen Home. Incorporation of CPAU funds will expand GoGreen Home financing eligibility to CPAU customers for the first time.

Funder Criteria

  • Upgrade an existing property served by CPAU
  • Contain costs for the following:
  • Otherwise meet eligibility requirements for GoGreen Home

CAEATFA and TECH Agreement to Collaborate

About TECH

The TECH Clean California Initiative (TECH) is a market transformation program designed to accelerate adoption of commercially available, low-emission space and water heating equipment technologies (primarily air source heat pumps and heat pump water heaters). TECH was developed as part of California Senate Bill 1477 and is funded by California gas corporation ratepayers under the auspices of the California Public Utilities Commission.  The TECH implementation contract was awarded to Energy Solutions in November 2020. For more information on the TECH initiative, please visit the TECH Clean California homepage.

The CAEATFA and TECH Agreement

CAEATFA and Energy Solutions entered into an MOA on February 7, 2022. Through this collaboration, Energy Solutions will provide TECH funds for credit enhancements as well as administrative support for GoGreen Home–financed projects for properties receiving gas service from an IOU and electric service from a POU.  Energy Solutions will provide a maximum of $1.5 million toward the collaboration with CAEATFA and the GoGreen Home program. This amount includes an initial firm commitment of $500,000 in credit enhancements. Additional credit enhancement funds beyond the first $500,000 were committed by Energy Solutions upon observation of sufficient deal flow that justified additional funds. Energy Solutions’ commitment to contribute funds for credit enhancement will expire on July 1, 2033.

Incorporation of TECH funds expanded financing eligibility to electric energy efficiency measures that have until now been ineligible for credit enhancement under GoGreen Home program limitations.

Amendment to CAEATFA’s Agreement with TECH

On November 4th, 2023 an amendment to the MOA negotiated between CAEATFA and TECH will come into effect removing Cool Roofs from being eligible for receipt of TECH credit enhancement funds if approved for financing after this date. Friday November 3rd, 2023, is the last day that GoGreen Home Lenders may approve for financing the installation of a cool roof at a property receiving electricity from a POU and gas from an IOU. GoGreen Home Contractors should likewise adjust their sales planning with this deadline in mind. All other financed electric measures remain eligible for credit enhancement at these types of properties.

Funder Criteria

Energy Solutions is providing funding for credit enhancements available to lenders for loans that:

  • Upgrade a property served by a gas IOU and electric POU
  • Contain measures on the CAEATFA list of Eligible Energy Measures that correspond to an electric fuel source (per GoGreen Home Regulations Section 10091.11(j))
    • Friday November 3rd, 2023, is the last day that the cool roof electric measure shall be eligible for installation and financing approval by a GoGreen Home Participating Lender for properties receiving gas from an IOU and electricity from a POU.
  • Otherwise meet eligibility requirements for GoGreen Home

Eligibility Expansion

Without incorporation of TECH funding, consistent with guidelines set by the CPUC, the GoGreen Home Regulations require that 70% of the loan value that receives a credit enhancement, or “Claim-Eligible Principal” (meaning it qualifies for reimbursement in the event of a charge-off), be for measures that correspond to an IOU fuel source.

With incorporation of TECH funds, the Claim-Eligible Principal may now also include the following, if the borrower receives gas service from an IOU, regardless of electricity provider:

  • Eligible Energy Measures that correspond to an electric fuel source per Section 10091.11(j) of the GoGreen Home Regulations (except for the cool roof electric measure);
  • Legal and practical costs of installation (such as the cost of procuring permits or upgrading electrical panels per Section 10091.1(r)(1)(A) (except those related to the installation of a cool roof);
  • Additional related home improvement costs per Section 10091.1(r)(1)(B).

GoGreen Home expansion of measures eligible for credit enhancement with
incorporation of TECH funding

Customer’s Gas Provider Customer’s Electric Provider
  IOU POU or Co-op
IOU No change. Claim-Eligible Principal may fund any combination of gas or electric measures. Limit on electric measures comprising 30% of Claim-Eligible Principal will be removed. Lenders may receive a credit enhancement for electric measures (except cool roofs) up to the loan maximum.
POU or
Co-op		 No change. Gas measures remain limited to 30% of Claim-Eligible Principal. TECH funding cannot be spent in non-IOU gas territory. No change. Customers remain ineligible for the Program as they are not served by an IOU.