{"id":32329,"date":"2021-06-24T02:42:15","date_gmt":"2021-06-24T06:42:15","guid":{"rendered":"https:\/\/test.greenmoney.com\/2025\/?p=32329"},"modified":"2021-07-31T00:58:21","modified_gmt":"2021-07-31T04:58:21","slug":"why-a-cooperative-model-for-clean-energy-financing-couldnt-miss","status":"publish","type":"post","link":"https:\/\/test.greenmoney.com\/2025\/why-a-cooperative-model-for-clean-energy-financing-couldnt-miss\/","title":{"rendered":"Why a Cooperative Model for Clean Energy Financing Couldn\u2019t Miss"},"content":{"rendered":"
>> Back to July 2021 Issue<\/a><\/div>\n
(above) The Howard Family and their solar PV system<\/h5>\n

\"BlakeIn 2017, Clean Energy Credit Union<\/a> (\u201cClean Energy CU\u201d) received its federal charter and became the first \u201cthematic,\u201d online-only, federally insured depository institution with an exclusive focus on clean energy lending. Since then, Clean Energy CU has experienced tremendous success and is influencing both the banking and clean energy sectors. To say that \u201cthe time was right\u201d for Clean Energy CU would be an understatement. Understanding its right-out-of-the-gate success requires a look at the underlying market conditions that necessitated its launch.<\/p>\n

In the early 2000s, growth in the clean energy sector was driven by improvements in costs, technological innovation, government policy, and public opinion. This growth, however, was outpacing the availability of financing that many consumers and homeowners needed to pursue their clean energy projects. For example, upfront costs for residential solar electric systems, residential geothermal systems, and other green home improvements would typically land in the $10,000 to $50,000 range.<\/p>\n

Of the 5,000+ credit unions and 5,000+ banks in the USA, only a handful were paying any attention to the sector. As a result, consumer financing options were typically limited to, and dominated by, VC-backed \u201cfintech\u201d companies such as Mosaic, Sungage Financial, and Dividend Finance, resulting in a dearth of competition to drive down borrowing costs. In contrast, all other segments of the clean energy value chain were laser-focused on reducing costs as rapidly as possible. Financing was the weak link that needed to catch up, and the cheapest form of consumer financing generally comes from federally insured depository institutions (i.e. banks and credit unions), so their entrance into the sector was sorely needed.<\/p>\n

Against the backdrop of the clean energy economy were burgeoning concepts like impact investing, conscientious consumerism, and purposeful careers. In that evolving, impact-economy landscape, the need for an \u201cimpact banking\u201d or \u201csustainable banking\u201d option was plain to see. Even so, there were a surprisingly limited number of options for consumers to choose from such as Self-Help Credit Union, Amalgamated Bank, and Beneficial State Bank. Widespread awareness had yet to be raised that where you deposit your money was as important as how you earned, invested, and spent it.<\/p>\n