California State Treasurer Fiona Ma on Oct. 15 announced a $30 million agreement with the California Energy Commission to expand a popular financing program for home energy efficiency upgrades.
The program, GoGreen Financing, is administered by the California Alternative Energy and Advanced Transportation Financing Authority, which Ma chairs as state treasurer.
Under the agreement, more than 7 million customers of publicly owned utilities will remain eligible for GoGreen Home, GoGreen Financing’s residential program.
The funds can be used for energy upgrades such as heat pumps for space and water heating, efficient electric appliances, solar panels plus battery storage, electric vehicle chargers, efficient lighting, and smart home energy management systems.
GoGreen Financing supports clean energy upgrades for Californians by creating a credit enhancement in the form of a loan loss reserve, through which participating lenders are provided coverage should the borrower default.
The loss reserve mitigates the risk of default, which enables lenders to offer lower rates, lengthier payback terms, and to approve a broader base of borrowers for energy upgrade loans. As loans are repaid, the credit enhancement dollars cycle back into the system and are made available for future loan financings, the California Energy Commission said in a news release.
The agreement, which runs through 2029, provides continuity and uniformity for GoGreen Financing during a key phase of the state’s long-term climate plan, the CEC said.
The CEC’s Equitable Building Decarbonization Program is supplying the funds to advance its goals to reduce carbon emissions in California homes and to advance energy equity. The Equitable Building Decarbonization Program is funded through California Climate Investments.
The effort is part of a suite of programs funded at the state and federal level to decarbonize California’s buildings by encouraging the installation and use of electric appliances; reducing greenhouse gas emissions; and making buildings more efficient, comfortable, and resilient in the face of climate change impacts.
Altogether, the CEC will be launching nearly $900 million in building decarbonization programs over the next two years. Each program is uniquely designed to address the up-front barriers of different market segments.
“At SMUD, we are driving the Sacramento region toward a clean energy future,” said Sacramento Municipal Utility District CEO and General Manager Paul Lau. “Programs like GoGreen Financing assist in this effort by making energy upgrades more accessible and helping customers adopt cleaner technologies like heat pumps and solar-plus-battery storage solutions. By combining GoGreen Financing with SMUD’s incentives and programs, customers can electrify their homes, lower energy bills and contribute to a clean energy future and economy. As we continue to lead this transition, we’re focused on ensuring that every community can participate in and benefit from our energy transition, which includes cleaner air, healthier neighborhoods and clean energy jobs. Together we are building a brighter, more inclusive future for all.”
“As the state’s largest publicly owned utility, LADWP is excited to be able to leverage California’s GoGreen Financing solutions to help our low- and moderate-income residential customers obtain lower-rate, longer-term financing than typically commercially available for critical decarbonization strategies such as energy efficient heat pumps, EV chargers, and bundled solar and battery storage projects," said Joe Ramallo, Chief Customer Officer, Los Angeles Department of Water and Power. "We look forward to continuing to work with the State on such innovative solutions to ensure our customers can be a key part of California's clean energy future.”
GoGreen Home participants may borrow for upgrades to a single-family home, townhome, condo, duplex, triplex, fourplex, or manufactured home.
Currently, nine credit unions and financial institutions are offering loans to GoGreen Home customers, with additional lenders anticipated to join in 2025.
For more information, visit the GoGreen Financing web page.
