Description
The Michigan Department of Environment, Great Lakes and Energy is seeking information to better understand best practices around financial products and lending practices for energy efficiency projects. The department has received $13,327,440 to capitalize residential and commercial loans and grants to install cost-effective energy efficiency measures. The information gathered may be used to assist the state in developing program strategy and possibly a Request for Proposals (RFP) or program application.
Key aspects of the program include:
• Providing grants and loans to conduct commercial and residential energy audits and energy efficiency upgrades and retrofits of building infrastructure
• Eligibility for loans includes commercial entities and Michigan homeowners
• Objectives for the program include maximizing loan volume, leveraging private capital, accelerating energy savings, and creating good-paying jobs
• The program considers a co-lending model with loan loss reserve (LLR) or subordination of the state's portion of the loan regarding default and collections
• The department is seeking feedback on the program's attractiveness to lenders, potential barriers or drawbacks, and suggestions for changes.