What Is the State of California’s GoGreen Financing Program?

Energy upgrades are a good thing. They can boost your comfort, reduce your carbon footprint, indirectly help the grid operate more reliably, and – very importantly – save money on utility bills over the long run by lowering energy usage. But they can be an expensive investment. A ducted air-source heat pump to heat and cool your home can cost about $20,000 installed, and rooftop solar with battery storage system for the home can easily top $50,000. A new multi-package HVAC system and ductwork for an office building can exceed $500,000. So it’s good news for Californians that there’s GoGreen Financing.

GoGreen Financing is a State of California-run program designed to make attractive, accessible financing available for qualified energy upgrades for homes and small businesses – improvements such as attic insulation, high-efficiency heating and air conditioning systems, EV chargers, and solar panels with battery storage. The program was created by the California Public Utilities Commission in 2013 to help Californians overcome the single greatest obstacle to making their homes and small businesses more energy-efficient: help with the upfront cost of energy efficiency improvements.

GoGreen Financing consists of two programs serving the residential and business sectors.

• GoGreen Home can be used to make energy-efficient improvements to single-family dwellings including detached homes, condos, townhouses, mobile homes, manufactured homes, and multiplexes of up to four units.
• GoGreen Business  helps small businesses, nonprofits and multifamily residential properties get financing for energy improvements to both the building and the equipment inside it.

Better loan rates and terms

GoGreen Home Financing for Residential Energy Upgrades

Through GoGreen Home, residential customers can make home energy improvements on a budget, stretching out loan repayment on energy upgrades for as long as 15 years (20 if the home energy improvement project includes solar) to keep monthly payments low if cash flow is a concern. Even if it’s not, every GoGreen Home borrower can get that warm I-got-a-good-deal feeling, because interest rates for GoGreen Home are considerably lower than for other energy financing products -- borrowers can literally save thousands of dollars in interest payments by financing through GoGreen Home. And GoGreen Home has energy loans for homeowners with lower credit scores, because part of the GoGreen Financing mission is to make financing for energy upgrades accessible to more Californians.

GoGreen Business Financing for SMB Commercial Property and Multifamily Housing Energy Upgrades

GoGreen Business borrowers enjoy similar advantages through lower interest rates on energy improvements, together with extended loan terms and broader loan eligibility. GoGreen Business offers loans, leases and energy service agreements for new businesses, nonprofit organizations, houses of worship and cannabis growers and retailers, all of which traditionally face challenges accessing credit. And customers can conveniently repay their energy loan or lease through the monthly utility bill. 

Importantly, GoGreen provides financing without a property lien. You won’t have to put your home or business property on the line with this financing, and you can use the program even if you’re a renter or lessee.

What makes it work?

GoGreen Financing is housed in the California State Treasurer’s Office, but these are not loans from the State of California. The GoGreen Financing program works behind the scenes with lenders, primarily credit unions, to provide them access to something called a loan loss reserve, which functions similarly to a loan guarantee: If a borrower defaults, the lender can make a claim against the reserve and make up most of the loss.

Participating GoGreen Financing lenders really like the loss reserve. In exchange for access to it, they offer the lower interest rates and extended loan terms that help Californians afford energy upgrades. That is the secret to the GoGreen Financing formula. Everybody wins: the customer, who gets a more energy-efficient home or business and a better financing package; the lender, who gets a new customer and a degree of security on the loan; and everyone in the Golden State, who gets a cleaner, greener environment.

Get the loan you need to upgrade your residential or commercial property. Choose Residential or Business or begin from our home page.