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Loan Loss Reserve Program


Expand clean energy lending, support your community, lower your risk. We’ve got your back.

The clean energy market is growing. To implement solutions like solar, heat pumps, and electric vehicles, communities across New York State need lenders to expand their clean energy financing options. With Loan Loss Reserve coverage, NYSERDA has your back, so you can back your customers. Tap new revenue streams, reach new customers, build greener communities—all while lowering your risk—with clean energy financing backed by our loan loss program.

How it Works

"This is a great, easy way to dip your toe in the water, get into clean energy lending in New York, reduce your risk, and grow your loan volume at same time."
Blake Jones Clean Energy Credit Union

New York State is working to expand equitable access to clean energy technologies and home and business projects that reduce carbon emissions. Through the Loan Loss Reserve Program, the State will cover a portion of the losses on defaulted loans, at no cost to your organization. So, you can lower your risk while building new, competitive loan products.

The Loan Loss Reserve fund is in the form of a credit enhancement, provided at no cost to you or your customers. The program supports a wide variety of clean energy projects, and covers up to 90% of Qualifying Eligible Losses on the remaining loan balance in the event of a default. This added risk mitigation allows you to approve a wider set of customers or offer more competitive rates and terms.

Benefits to Your Institution

"I think the important thing in terms of the loan loss program, what it brought to us is the ability to do smaller loans that would otherwise potentially be uneconomical."
Jay Merves Director of Business Development, NYCEEC

The clean energy sector in New York State is experiencing unprecedented growth. Seize the opportunity to capture early market share and tap into other program benefits:

  • Create desirable, competitive lending solutions at little risk to your institution
  • Unlock new revenue streams by growing your business with current customers, attracting new customers, and reaching underserved customers with new products, extended terms, lower interest rates, or bigger loans
  • Be seen as a sustainability leader in your community and the financial industry, actively working to create healthier, safer, more affordable communities for all

Who Can Apply

"In today’s economic climate, providing credit to consumers in LMI communities can be difficult due to restrictions imposed by traditional senior lenders. This program facilitated our entrance into this market by enhancing downside protection on our credit products. The process with NYSERDA was thorough, yet highly efficient, as we had the program in place within 90 days."
Anuj Khanna Founder & CEO Comfort Connect

This program is ideal for qualified financing lenders—including local and regional banks, community-based lenders, and other financial firms—that will develop financing products related to energy efficiency upgrades for residential, multifamily, small businesses and non-profit organizations. We especially encourage institutions working with disadvantaged communities to apply to this program, to ensure equitable access to clean energy solutions across New York State.

Training and Support

To help you build a clean energy lending program that sets you up for success, NYSERDA provides educational resources and support:

  • Our free Clean Energy Finance Toolkit [PDF] is a comprehensive but easily digestible document featuring information on clean energy technologies and market trends, example lending products and considerations, and a checklist for institutional readiness
  • Become a solar lending authority, with access to trainings and a certificate program Link opens in new window - close new window to return to this page. from the Inclusiv Center for Resiliency and Clean Energy

Getting Started

Apply Now
  1. Review program documentation - Review the Program Opportunity Notice (PON) Link opens in new window - close new window to return to this page. for a detailed breakdown of participation requirements and product eligibility.
  2. Develop your proposal - Once you have confirmed your eligibility, create a proposal that outlines the products you plan to offer including proposed geography and how the Loan Loss Reserve Program will improve products for borrowers.
  3. Gather your application materials - Along with your proposal documents, your application requires company information such as regulatory and insuring agency details, if applicable.
  4. Submit your application - Once your information is complete, submit your online application Link opens in new window - close new window to return to this page.. Partially completed applications cannot be saved on NYSERDA’s portal, so make sure you have all relevant documents ready before applying.


Please contact John Joshi or Heather Clark at NYSERDA, the program administrators, at [email protected] for more information, to discuss your product proposal, or to answer any questions.