Connecticut Solar Loan Partner Graduates from Green Bank

The Clean Energy Finance and Investment Authority (CEFIA), also known as the Connecticut Green Bank (CT Green Bank), recently announced that one of its earliest partners, Sungage Financial, has graduated from its CT Solar Loan pilot program with a $100 million partnership with Massachusetts-based Digital Federal Credit Union (DCU) for solar loans in Connecticut and three other states. The graduation marks the first time that a CT Green Bank product has fully transitioned to a private capital partner from the quasi-public financial support of the CT Green Bank. The CT Green Bank's support of Sungage led to tremendous success and a positive growth outlook for the company, which attracted DCU's $100 million commitment.

"The ultimate goal for all of our programs and product offerings is to attract private capital investment, transition away from ratepayer support and subsidies, and create a sustainable market for clean energy to thrive in Connecticut," CT Green Bank Chief Financial Officer Bert Hunter said. "Sungage's graduation from reliance on subsidized funding to self-sustainability through private capital exemplifies a successful Green Bank model at work here in our state."

In 2012, the CT Green Bank and Sungage created the CT Solar Loan pilot, which became the industry's first dedicated solar loan product not linked to a specific solar panel manufacturer, nor requiring any home equity or lien on the home. The Green Bank provided a $300,000 loan loss reserve, $1 million of subordinated debt and a $5 million warehouse for the CT Solar Loan.

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Date Posted: 11/12/2014