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United States Green Bank

Victoria Harmon's picture
CEO and Founder, VL Harmon Advisors

Advising people and companies with a core mission: Combating climate change and working to transition to a clean energy system and decarbonize our economy.

  • Member since 2022
  • 2 items added with 359 views
  • Sep 14, 2022

Out of the Inflation Reduction Act comes funding for a U.S. Green Bank, modeled after the successful NY Green Bank. We need to scale clean energy projects like community solar and green banks partner with the private sector to finance clean energy projects to get more renewables deployed into our economy. The US Green Bank will nationalize this successful initiative.

The New York green bank helped mitigate those risks by wading through the documentation and contracts involved in the project while also starting to lend out funds at a low interest rate. Those green bank loans established a record of repayment that then made traditional lenders more comfortable with putting their own money toward community solar initiatives, broadening the implementation of such programs.
“The intent of the green bank in New York was to provide financing for these projects where the problem was not the cost of financing, but the availability of financing,” Kauffman said. “There are many community solar projects across the state now. They really benefited from the pioneering role that the green bank took on to establish the market.”

Matt Chester's picture
Matt Chester on Sep 14, 2022

Is there a typical size for the type of project that would be best suited for these banks? Put another way, are some projects either too big or too small for them to be helped by this set up? 

Victoria Harmon's picture
Victoria Harmon on Sep 14, 2022

There are typical sizes, but the Green Banks generally fill the financing gaps of larger banks who cannot finance smaller deal sizes. If they are "too big" they will generally find traditional financing, particularly now that there is more of a clean energy market.

Victoria Harmon's picture
Thank Victoria for the Post!
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