HADLEY, Mass.–UMassFive College FCU said it has partnered with climate technology start-up Halitra to win a $650,000 competitive grant to pilot innovative climate finance approaches from the Massachusetts Clean Energy Center (MassCEC).
According to the organizations, MassCEC seeks to support innovative financing solutions to support commercial building retrofit projects that put buildings on a path to be consistent with Massachusetts net zero 2050 greenhouse gas goals by implementing best practices for efficiency and incorporating solar, storage, and other solutions where appropriate.
‘Groundbreaking Software’
The two organizations said Halitra's “groundbreaking software is at the intersection of cleantech and fintech, providing a mechanism for UMassFive to rapidly compare local buildings to thousands of others when considering energy upgrades.”
Halitra and UMassFive College CU said the technology platform enables stakeholders to identify and capitalize on energy-saving initiatives that “not only contribute to a greener future but also promise profitability. By bridging the gap between environmental responsibility and financial viability, Halitra empowers organizations to make strategic, sustainable and profitable lending decisions that their clients want.”
Building on Success
The two organizations said the pilot builds on the success of the state’s Mass Solar Loan program, which focused on expanding access to residential solar and supported nearly 6,000 new solar installations throughout the Commonwealth between 2015 and 2020. The $708-million UMassFive was a financing leader for that program, and said it doubled the production of any other lender and successfully reached underserved populations, with more than 70% of UMassFive solar loans through the Mass Solar Loan program going to low-income qualified homeowners.
Benefits to Building Owners
“What we did for consumers with the Mass Solar Loan, we want to do for building owners in this pilot,” UMassFive CEO/President, Rich Kump said in a statement. “Building owners will benefit from an interest rate buydown of 1%, no origination costs, 100% financing, and flexible underwriting. We expect that building owners in the Commonwealth will eventually need to meet certain sustainability metrics, and frankly, we would rather see that accomplished with incentives, not penalties.”
This two-year program will officially launch later this summer.