Verdant Commercial Capital, LLC has completed the first ever on-bill repayment agreement for the State of California’s GoGreen Business Energy Financing program. GoGreen Business is committed to sustainability, and it supports small businesses that upgrade their operations in a more energy-efficient manner.
With on-bill repayment, once the project is complete, the client’s monthly utility bill includes the payment amount for the financing of the energy saving measures in addition to the utility service cost. For some projects, the energy savings resulting from the project may be higher than the amount of the monthly payments repaid through the utility bill, ultimately lowering the client’s overall utility costs.
While this is the first GoGreen Business on-bill repayment project financed by Verdant, they have been an approved GoGreen Business lender since early 2022 and funded several standard financing projects through the program. “We are proud to be a financing partner in GoGreen Business,” said Josh Patton, vice president for Verdant Commercial Capital. “Verdant partners with utilities, energy efficiency program administrators, green banks, and state agencies around the country to help businesses save money and make financing energy saving projects more affordable.”
In this initial on-bill repayment project, the customer, a sandwich shop franchisor and industrial catering company in Northern California, installed three high speed doors that provided a solution to replace two inefficient freezer doors and a cooler door. This is expected to provide the customer with 776,780 annual kWh savings to significantly reduce their energy costs.
“We’re very pleased that participating finance companies like Verdant Commercial Capital are able to leverage GoGreen Business’s on-bill repayment feature to facilitate energy upgrades,” said Shela Tobias-Daniel, interim executive director of California Alternative Energy and Advanced Transportation Financing Authority, the state agency that administers GoGreen Business. “As the first on-bill project enrolled in GoGreen Business, this is a big win for businesses seeking convenience along with energy savings – and a big win for California’s environment.”
With GoGreen Business, business and nonprofit building owners and tenants in eligible investor-owned utility territories can finance solutions to help save energy, decrease operating costs, and increase the value of their property while reducing their carbon footprint.