Valley Vision’s Green Capital Alliance hosted a Clean Tech Bank and Financing Summit on October 18, 2011. Based on the remarks of the keynotes and panelists, the advice for growing the clean tech sector in the Sacramento region is listed below. Download PDF version»
- Look for projects that are replicable across the country and that avoid project finance risk. Projects that are immediately scalable should be first priority.
- Time spent on standardization is well worth the effort. Purchase Power Agreements that have been vetted and can be used for multiple similar or duplicate = projects are a great example.
- The region should work to streamline permitting. Often the most expensive and frustrating part of a clean energy project are the permitting and site control issues.
- A focus on high level human capital is a must for the Sacramento region. A company’s background – management, tech, and financial experience is just as important as the equity for investors.
- Look for a financing efficiency model that banks can replicate. For example, the SBA loan process is more efficient than other processes for lending. Government and the finance industry need to continuously streamline the lending process.
- SMUD is a fantastic utility, among the best in the country and is a competitive advantage that the region needs to constantly leverage.
- Competition for deals among financial institutions would greatly benefit the region. For every deal signed, other banks take notice and will want to invest in Sacramento.
- Sacramento has great alignment in the political support, policy and vision. All directional arrows are pointed in the same direction and leadership is aligned. This will lead to great success in this region.
- Public awareness and education should be a priority. Education regarding energy efficiency and renewables will result in greater demand.
- The region has a great opportunity with Property Assessed Clean Energy
financing. The commercial PACE is already in place with place with Placer mPOWER and now the Ygrene Energy Fund investment in the city of Sacramento. Congressman Lungren appealed to the audience and the region to support HR 2599, the Congressional residential PACE fix.
- Be cautious – clean energy will not be the solution to all of our economic problems; however, it is a good start and has many benefits.
