NY Green Bank Surpasses $2 Billion in Financial Commitments and Celebrates 10-Year Anniversary
May 31, 2023
Governor Kathy Hochul today announced NY Green Bank, a division of the New York State Energy Research and Development Authority and the largest green bank in the country, has surpassed $2 billion in cumulative financial commitments in support of the State's transition to clean energy and sustainable infrastructure, as it celebrates its 10-year anniversary. The state-sponsored financing entity has a growing portfolio of transactions supporting building decarbonization, clean energy, energy storage, sustainable transportation, and other sustainable infrastructure, which are expected to mobilize up to $5.5 billion in public and private investments. These investments advance the Climate Leadership and Community Protection Act goal to reduce emissions 85 percent by 2050 with commitments in a variety of sectors supporting the Climate Act goal to ensure at least 35 percent with a goal of 40 percent of benefits from clean energy investments be directed to Disadvantaged Communities.
"New York is proud to be home of one of the nation's leading green banks which has been instrumental in providing early support for clean energy sectors, including community solar, energy storage and building electrification," Governor Hochul said. "The NY Green Bank surpassing $2 billion in financial commitments highlights the state's commitment to a renewable and clean energy transition that will create a greener New York for all."
NY Green Bank reached self-sufficiency earlier than expected in July 2017 with revenues exceeding operating expenses. Projects supported by NY Green Bank to date are estimated to result in lifetime reductions in greenhouse gas emissions of more than 41 million metric tons, the equivalent of taking more than 416,600 cars off the road for 24 years.
New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, "As we mark these financial and organizational milestones, we recognize the catalyzing impact NY Green Bank has had on the decarbonization of New York State's economy over the past decade. Through these commitments, NY Green Bank is advancing a clean energy future, as well as sending a clear signal to private developers and investors that New York State is a strong market for green infrastructure and economic development."
NY Green Bank President Andrew Kessler said, "NY Green Bank is proud to kick off the celebration of our 10-year anniversary by sharing that we have exceeded $2 billion in investments for clean energy and sustainable infrastructure across the state including meeting our investment goal three years ahead of our target. This significant accomplishment reinforces NY Green Bank's critical role in advancing the State's ambitious climate goals by addressing funding gaps and animating private sector activity in clean energy markets."
As of May 2023, NY Green Bank has completed 123 transactions which serve to address financing gaps by creating replicable and scalable precedents that draw private and institutional lenders and investors into less familiar asset classes and project types. Their completion of some of the earliest transactions in the community solar market is a leading example of how NY Green Bank has worked to expand private sector activity in this important asset class.
Recent key transactions include:
- The Arlington at Poughkeepsie - $21 million construction-to-term loan to support the first phase of development of the rehabilitation and electrification of a former school into a new all-electric development with apartments and commercial space in Poughkeepsie, New York.
- Frederick Samuel Apartments in New York City - $12 million to finance predevelopment expenses associated with the rehabilitation of the New York City Housing Authority's (NYCHA's) Frederick Samuel Apartments located in Harlem, New York. This transaction was NY Green Bank's first predevelopment loan for a NYCHA Permanent Affordability Commitment Together (PACT) project and will contribute to the preservation of 664 units of affordable housing across 40 buildings.
- Hecate Energy LLC - $60 million participation in a $250 million term loan that will finance the development of solar and battery storage projects across New York State. By supporting Hecate's growth throughout the State, this transaction builds a strong precedent for further financings of large development pipelines.
- Sunrun Inc. - $19 million additional commitment in support of a $160 million revolving credit facility to finance the purchase of eligible solar and storage equipment. This innovative loan product provides access to capital earlier in the residential solar and storage project lifecycle to support solar/renewables development and growth in New York State.
- Tenet Energy, Inc. - $10 million revolving warehouse facility for EV loans originated in New York State, helping to make electric vehicles more affordable for New Yorkers, while establishing a precedent for capital market participants seeking to expand their sustainable transportation activity.
Public commitments include: $100 million for building electrification and energy efficiency projects in buildings located in and/or serving disadvantaged communities; $150 million for clean energy improvements in affordable housing properties; $200 million toward energy storage-related investments; and $100 million in financing to help clean transportation businesses locate or expand in New York State, with a goal to achieve these investment targets by 2025.
NY Green Bank will continue its 10-year anniversary celebration throughout 2023 by sharing market sector case studies from key transactions in the past decade on social media and highlight regions of the state where investments are providing benefits to communities. Please visit NY Green Bank's website to learn more about its mission, recent transactions, and clean energy financing products.
New York State's Nation-Leading Climate Plan
New York State's nation-leading climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues fostering a green economy across all sectors and ensures that at least 35 percent, with a goal of 40 percent, of the benefits of clean energy investments are directed to disadvantaged communities. Guided by some of the nation's most aggressive climate and clean energy initiatives, New York is on a path to achieving a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and economywide carbon neutrality by mid-century. A cornerstone of this transition is New York's unprecedented clean energy investments, including more than $35 billion in 120 large-scale renewable and transmission projects across the state, $6.8 billion to reduce building emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $2 billion in NY Green Bank commitments. These and other investments are supporting more than 165,000 jobs in New York's clean energy sector in 2021 and a 2,100 percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York's climate action with nearly 400 registered and 100 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State's largest community air monitoring initiative in 10 disadvantaged communities across the state to help target air pollution interventions and combat climate change.
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