State Policy Description
Policy Components Questions
- 1. Has the state established a green bank? Yes
- 2. Is the bank funded? Yes
- 3. Does the bank offer financing to more than one sector (residential, commercial, local government, multifamily)? Yes
- 4. Does the bank offer financing for renewable energy and energy efficiency projects? Yes
- 5. Does the bank offer financing for newer or emerging technologies (EV infrastructure, storage, etc.)? Yes
Policy Component information last updated July 02 2021
At its essence, a green bank blends public and private capital to fund the upfront cost of clean energy improvements. The intent is to reduce the risk for the investor and to scale the market for projects. Sometimes these banks will attempt to address a limitation in the private lending sector – for example, while most bank commercial loans are 5-10 years, the NY Green Bank extends these terms for 20 years and assumes the risk of the investment on the back end. In this way, the public bank is partnering with the private lending institutions to address barriers for businesses. These entities can be housed within an existing state agency with administrative, rule making, and underwriting authority. For more information on the components of the policy see the full policy brief.
For more information on the components of the policy see the full policy brief.