SACRAMENTO – California State Treasurer Fiona Ma announced today that Enervee, One and SoCalGas have partnered to offer the first microloans available through the Residential Energy Efficiency Loan (REEL) program, administered by the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA). The microloans, offered online at the point of purchase with instant approval and exceptional rates, make it easier for SoCal gas customers to purchase energy efficient appliances that help California meet its ambitious climate change goals.
This innovative partnership allows customers of Southern California Gas Company to purchase and finance energy efficient appliances through an online marketplace. Ranging in size from $200 to $5,000, loans have extended payment terms designed to make saving energy attainable to many consumers who otherwise might be underserved by lenders. The loan program, dubbed Eco Financing, is offered by Enervee, an online platform that enables utilities to deliver greater energy savings at lower costs by combining technology, energy efficiency and credit.
Eco Financing loans are underwritten by One Finance, Inc. and backed by the REEL program. At 8.98%, interest rates are significantly lower than other retail payment options, and loans are available for customers with credit scores of 580 and above.
“This partnership has the capacity to help many more Californians save energy and reduce expenses and to assist California in making progress on its fight against climate change,” said Treasurer Ma.
Since 2016, REEL has supported California’s ambitious climate goal of doubling energy savings by 2030 by offering a loan loss reserve to lenders who enroll in the program. The risk mitigation allows participating lenders to offer expanded credit approvals, lower rates and longer terms for energy efficiency upgrades than they otherwise could. Regulation changes adopted in May paved the way for lenders to integrate REEL loans into online marketplaces serving investor-owned utility customers, which offer energy efficient appliances for sale to customers across the state. REEL has helped some 1,500 California households make more than $25 million in home energy efficiency improvements.
To learn more about the REEL program, visit https://www.treasurer.ca.gov/caeatfa/cheef/reel/index.asp.
