A new consumer credit union will soon allow consumers in all 50 states to take out loans for going green, such as installing solar panels, making energy-efficient retrofits, or even purchasing an electric car.
Clean Energy Credit Union is set to open by the end of the year.
The credit union is being touted as the first of its kind for clean energy lending.
Clean energy retrofits are gaining popularity among homeowners. The U.S. solar market alone bloomed by 95 percent in 2016.
“We’ll be more up-to-date on it than any other lender, since we’re clean energy geeks and that’s what we focus on,” says Blake Jones, an engineer and board chair of the CECU.
Jones says he started CECU after noticing a gap in the market. He says other lending institutions in the consumer home loan market lack the flexibility and familiarity in structuring such loans. By making the organization a credit union, Jones says CECU hopes to offer more competitive rates to its members.
The credit union is based in Boulder, Colo., but will have no physical bank branches and will be available virtually.
CECU will launch with $1.5 million in seed money to make loans. The seed money was raised mostly by environmental nonprofits. CECU will launch by offering savings accounts. By 2019, it hopes to also expand into checking accounts.
Jones says when CECU launches it will have the capacity to issue $15 million in loans.
“The good news is most forms of clean energy won’t need subsidies in five years,” says Jones. “It’s becoming bipartisan. The entire world is seeing the opportunity.”
Source: “New Clean Energy Credit Union to Help Consumers Go Green, Save Money,” Curbed.com (Nov. 28, 2017)
