Establishment of Partnership to Provide Loan Products to Install Solar and Storage Solutions for Pasadena Electric Customers

Description

Provisional upon City Council appropriation, Pasadena Water and Power (“PWP”) is looking to form partnerships with financial institutions (banks or credit unions) for a loan program supporting the installation of solar panels and storage systems within the City of Pasadena. Modeled after the “Mass Solar” Loan Program, the program's objective is to reduce the cost of ownership of solar and expand access to solar loan products to low-income homeowners of single-family residences. Pasadena’s goal is to create a pilot program with one or more financial institutions that, if successful will become a larger, permanent program that potentially opens to a wider cohort of Pasadena’s Electric System customers. Pasadena is looking to financial institutions to provide loan funding and loan administration services within certain parameters, while Pasadena provides loan support by verifying borrower program eligibility based on established criteria. Pasadena will also offer interest rate buydowns, a loan-loss reserve, and other mechanisms to facilitate lending to customers and to reduce risk to participating financial institutions.