Loans for energy efficiency projects are low risk, a study by the U.S. Department of energy found, according to a March 31 news release.
The study found efficiency loans are "generally low risk, have historically been repaid at a high rate and perform well compared to other asset classes," the release reported.
“The findings in this study are a compelling invitation to financial institutions to invest with homeowners, states and local governments to maximize clean energy deployment under the Bipartisan Infrastructure Law and beyond,” U.S. Secretary of Energy Jennifer Granholm said in the statement. “Energy efficiency is the lowest cost, clean energy resource we have.”
The study, titled Long-Term Performance of Energy Efficiency Loan Portfolios, was produced by the State and Local Energy Efficiency Action Network, Department of Energy and Lawrence Berkeley National Laboratory.
According to the Department, the study "informs a long-standing barrier of access to credit for energy efficiency improvements among low-income and underserved communities."
The study also highlights opportunities for financial institutions to "support the transition to a cleaner, more efficient building stock," the release said.
"With states and local governments set to receive billions of dollars in funding for clean energy deployment under the Bipartisan Infrastructure Law, this study reinforces the impact financial institutions will have as partners in retrofitting America’s building stock and the crucial role energy efficiency loans will play in cutting costs for American families and reaching President Biden’s net-zero carbon economy by 2050," the agency said.
