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State officials have launched a new program aimed at lowering the barrier of upfront costs that prevent some consumers from purchasing renewable energy systems and more efficient household appliances.
GreenSun Hawaii is using $2.69 million in federal stimulus money to create a "credit enhancement" fund that makes it easier for individuals and businesses to borrow money for such investments. The program reduces interest rates for some borrowers and helps others qualify for loans that lenders might not otherwise approve.
| For more information about GreenSun Hawaii, including loan applications and listings of participating solar contractors and financial institutions, visit www.greensunhawaii.com. |
For each loan made by a participating lender, GreenSun will contribute from 4 percent to 14 percent of the loan amount to the lender’s loan loss reserve account. In the event of a loan default, the lender will be covered for first losses ranging from 10 percent to 100 percent of the loan amount.
The program is being administered by the state Department of Business, Economic Development and Tourism and the Hawaii Community Reinvestment Corp.
GreenSun is the latest effort by state officials to reduce Hawaii’s dependence on oil and bring down energy costs, which are the highest in the nation. The state’s goals are laid out in the 2008 Hawaii Clean Energy Initiative, which calls for generating 70 percent of Hawaii’s energy from renewable sources by 2030 and reducing energy usage by 30 percent through efficiency measures.
Initial progress was significant, thanks to tax credits for alternative energy devices like photovoltaic systems, as well as rebates for solar water heaters and compact fluorescent light bulbs. But officials have said they are concerned that further gains could be harder to come by without new programs and marketing efforts to encourage consumers who can’t afford the upfront cost of devices like a PV system or solar water heater.
The GreenSun initiative follows a "Hot Water, Cool Rates" program created by Hawaii Energy last year which provides incentives to lenders to reduce interest rates on loans for solar water heaters. Rebates offered by Hawaii Energy are paid for through a surcharge on electric bills.