Alaska’s new ‘green bank’ hopes to improve the financial case for renewable energy

Anchorage Solar worker Tim Resnick hoists a star sheet complete his caput earlier installing it connected a tile successful 2018. (Erin McKinstry/Alaska Public Media)

Alaskans looking to put successful star panels aliases different renewable power infrastructure for their homes will apt person immoderate caller options successful nan adjacent fewer years. The authorities is mounting up a caller “green bank” that intends to thief Alaskans support their powerfulness costs down and velocity nan modulation to renewable energy.

The authorities creating Alaska’s greenish slope hasn’t been signed into rule yet — it’s awaiting a fewer last checks earlier Gov. Mike Dunleavy’s signature — but Chris Rose, who has led nan nonprofit Renewable Energy Alaska Project for 2 decades, is excited.

“I deliberation nan greenish slope tin really play a beautiful large domiciled successful helping group get upfront superior to do nan kinds of projects that they want to do, but they conscionable don’t person that money,” Rose said successful a telephone interview.

It’s not a caller concept. States for illustration Connecticut and Hawaii person been utilizing greenish banks to promote renewable power improvement for years. Massachusetts just started 1 past year.

And for now, it’s difficult to opportunity what Alaska’s programme will look like. But Rose said 1 extremity is making it little risky to lend retired rate for renewable power projects, and successful turn, making it cheaper and easier for group to get loans. And erstwhile a location aliases business proprietor has nan money to put up front, Rose said, that unlocks a wealthiness of national incentives — for illustration ample taxation credits connected things for illustration solar panels, heat pumps and weatherization. 

“But you can’t get a taxation inducement aliases a taxation in installments aliases a rebate from nan national authorities if you don’t walk nan money successful nan first place,” he said.

That takes different forms successful different places. For instance, Hawaii’s greenish bank, nan Hawaii Green Infrastructure Authority, started by straight financing star arrays connected nan roofs of low- to moderate-income households, renters, nonprofits and mini businesses, particularly folks who didn’t suffice for regular loans. 

Executive Director Gwen Yamamoto Lau said Hawaii’s greenish slope doesn’t moreover person to tally in installments checks anymore, acknowledgment to its Green Energy Money Saver program. Essentially, it takes what you’re presently paying for electricity, cuts it by astatine slightest 5%, and splits nan remainder betwixt your remaining powerfulness measure and a indebtedness connected caller rooftop star panels.

“They conscionable proceed paying their inferior bill, and nan inferior past will transportation nan indebtedness costs to us,” she said by phone.

That takes a batch of lenders’ consequence retired of nan equation, she said — your expertise to repay nan indebtedness isn’t based connected your income, but alternatively really overmuch power you upwind up saving.

And there’s tons of national thief retired there, too. Green banks astir nan state sewage a awesome boost pinch nan 2022 Inflation Reduction Act. Vice President Kamala Harris said astatine an arena past period announcing $20 cardinal successful greenish slope backing that nan attack allows communities to find what they need.

And it’s arsenic bully a clip arsenic immoderate for Alaska to subordinate in, says Bryan Butcher, nan caput of nan Alaska Housing Finance Corporation, which will location nan greenish bank.

“In immoderate of nan different authorities greenish banks, we’re seeing opportunities to lucifer $1 from nan Green Bank to $6 aliases $7 from different different areas, whether from nan backstage assemblage (or) from different authorities entities,” he said by phone.

And Alaska’s greenish slope apt won’t beryllium restricted to smaller projects for illustration rooftop aliases small-scale solar, Butcher said.

“I deliberation we spot this arsenic an opportunity to to person ample projects connected a commercialized standard arsenic good arsenic perchance smaller projects,” he said.

But he said Alaskans should temper their expectations — nan greenish slope won’t beryllium a metallic slug for nan state’s power needs. It’ll apt return nan remainder of nan twelvemonth conscionable to guidelines up nan greenish slope itself, and it’s not clear erstwhile nan first indebtedness mightiness beryllium issued. But it’s a measurement successful nan correct direction, he said.

“This is going to beryllium a bully measurement guardant to execute a batch of affirmative things. That’s a bully thing,” he said. “But if nan anticipation is this does everything for everybody, for illustration anything, I deliberation we’re going to autumn short of that.”

In nan meantime, Butcher said nan lodging finance agency is gearing up to administer its stock of a $125 cardinal national assistance aimed astatine expanding rooftop and organization star projects for low-income and disadvantaged communities astir nan state. He said he expects backing to beryllium disposable later this summer.