Dive Brief:
- Two investment firms are launching $100 million funds to finance energy efficiency projects.
- Joule Assets plans to aggregate efficiency and demand response financings for private equity investors and Kilowatt Financial aims to securitize efficiency projects.
- Joule plans to scale up to more than $500 million in funding.
Dive Insight:
Solar developers have jumped into securitization and it appears the efficiency sector is following suit. Increased financing options lower costs and improve the likelihood projects can move forward. This could be a major breakthrough for the efficiency sector.
"This transaction will allow Kilowatt to launch a much-anticipated market for the securitization of consumer energy efficiency loans in the U.S.," said Marshal Salant, Citi's managing director of alternative energy finance.