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Green Energy Financing

Did you know energy improvements and conservation upgrades can be paid for with little to no cost upfront? In the City of Sacramento, programs are available to help residents and businesses save energy and water while improving the quality of their home or building. Many of these programs offer financing options or offset the costs of upgrades such as improvements to mechanical and electrical systems, installation of water-efficient fixtures, and development of onsite renewable energy and electric vehicle charging.

Water and energy improvements to existing buildings and homes can provide many benefits. Upgrades can improve indoor quality and comfort while lowering utility bills. Completing multiple improvements at one time can also allow for the bundling of energy measures, which may result in greater savings and provide a quicker return on investment. The City promotes several voluntary programs to address financing barriers and encourages individuals to consider all options.

GoGreen Financing has everything Californians need to finance energy efficiency upgrades for an existing home, small business or affordable multifamily property. Administered by the State of California with support from utilities, GoGreen Home, GoGreen Business and GoGreen Multifamily provide attractive financing options that put energy upgrades within reach, with no out-of-pocket costs or property liens. Participating lenders and contractors work with borrowers to finance and install efficient heating and cooling systems, Energy Star appliances, insulation, windows, cool roofs and more at exceptional rates and terms. Tenants and property owners qualify.

Looking to finance an electrification project for your single-family home? Through GoGreen Home, residents can finance a heat pump HVAC, heat pump water heater or induction range and support Sacramento’s goal of achieving carbon neutrality in existing buildings by 2045.

Property Assessed Clean Energy (PACE) Programs

PACE programs offer an alternative means to finance energy, water, and seismic improvements to existing property. Typically, property owners can access property-secured financing with no out-of-pocket costs. Financing is repaid via the property owner’s tax bill over a period of time. Eligible improvements generally include those that are permanently affixed to the property and save energy or water, or produce renewable energy. For example, projects may include:

  • Attic insulation; replacement of heating, ventilation, and air conditioning equipment;
  • Solar photovoltaic systems;
  • Electric vehicle charging infrastructure; and
  • Low-flow toilets or other water conservation improvements.

The City of Sacramento has authorized four PACE providers to offer financing to properties in city limits. Each provider has one or more PACE programs, with potential for unique terms and requirements under each program.

California Home Energy Renovation Opportunity (HERO) Program

California Statewide Communities Development Authority Open PACE Program

Offers multiple programs, including Alliance NRG, CaliforniaFIRST, PACE Funding, Spruce Finance, and CleanFund.

California Municipal Finance Authority PACE Program

As of 2020, FortiFi (previously Energy Efficient Equity, Inc.) is no longer part of CMFA and is now part of CSCDA.

Dividend Finance (Figtree PACE Program)

Ygrene Works

As of August 2022, Ygrene has suspended financing for new residential PACE projects until further notice.

On December 6, 2016, the Sacramento City Council adopted a PACE policy. This policy establishes minimum standards and guidance for all PACE programs within city limits. The intent of the policy is to foster consumer protections and responsible lending practices. PACE policy materials are available online:

What if I Don’t Own My Property?

Residents and businesses can still access renewable electricity without the responsibilities and costs of system ownership. SMUD offers voluntary community solar and green energy programs available to all customers, including renters, tenants, and property owners. Participation provides you a renewable energy credit on your bill, for clean power produced at a local solar farm or other offsite renewable energy facility.

Additional Resources

For those completing property improvements onsite, rebates and financial incentives may be available for energy and water improvements. For those interested, the City recommends identifying any available incentives or rebates first before securing additional financing. Tools are also available online for consumers considering options for solar. Several resources are identified below:

We are proud supporters of Energy Upgrade California