What policies and financing instruments can rapidly scale up investment in clean energy? That´s a key question before ministers of energy from the largest economies in the world as they gather for the 7th Clean Energy Ministerial. Participating countries are responsible for 90% of global investment in clean energy, accounting for $300 billion in capital deployment last year. The purpose of the Ministerial is to “bring global energy policymakers together with visionaries from the business and investment communities and other clean energy experts to drive high-impact, real-world action.”
This year Clean Energy Works will be at the table for the Ministerial’s Roundtable on Financing, joining leaders in the field from multilateral development banks, the United Nations, and a host of experts in policy and finance for energy efficiency.
At the roundtable, Clean Energy Works will champion inclusive financing for distributed energy solutions in order to open the clean energy economy to all customers regardless of income, credit worthiness, or renter status. While many Green Banks and public financing efforts have made financing available to retail customers through loan programs, tariffed on-bill financing is an improved program that removes structural barriers to participation. Loan programs have structural barriers that disqualify the majority of customers with lower income; tariffed on-bill financing programs remove these barriers.
The Pay As You Save® (PAYS®) system is already reaching customers even in persistent poverty regions in Kentucky, North Carolina, and Arkansas – a signal that it is possible to finance distributed energy upgrades even in distressed economies. Recent results reported by a utility implementing PAYS in Arkansas has demonstrated how tariffed on-bill financing can accelerate capital deployments, literally quadrupling the rate of capital deployment in the first 90 days.
While these results are remarkable, they are not surprising. Clean Energy Works won a FiRe Award for high-impact innovation in energy finance at the Bloomberg New Energy Finance summit, highlighting the potential for PAYS to exponentially increase investment in distributed energy solutions.
Participation in the Clean Energy Ministerial follows contributions by Clean Energy Works to the Clean Energy Financing Solutions Center. The Clean Energy Financing Solutions Center is an initiative among 10 countries in the CEM announced at the international climate negotiations in Paris. The initiative will assist governments around the world mobilizing more investment in clean energy.