GoGreen Business Energy Financing

GoGreen Business Energy Financing is sponsored by State of California. Administered by the State of California, this program provides financing with low interest rates to small businesses for energy efficiency projects and equipment. This includes the cost to purchase and install new energy-efficient refrigeration equipment.

GoGreen Business Energy Financing | State of California Office of the State Treasurer Helping small businesses with affordable financing options to make energy-efficient equipment purchases and commercial building upgrades and retrofits that save energy and cost - Background on the CHEEF GoGreen Business Eligible Energy Measures (EEMs) List - GoGreen Business Eligible Energy Measures (EEMs) List GoGreen Business Partner Resources - GoGreen Business Partner Resources GoGreen Business Regulations - GoGreen Business Regulations CHEEF Reports and Additional Materials - CHEEF Reports and Additional Materials Visit GoGreenFinancing.

com Energy Efficiency Leases, Loans and Service Agreements The GoGreen Business Energy Financing program (GoGreen Business, formerly the Small Business Financing program) helps California’s small businesses and nonprofits access attractive financing for clean energy generation and storage upgrades, electric vehicle (EV) charging upgrades, and energy efficiency retrofits.

Like other CHEEF programs, GoGreen Business offers participating finance companies access to a loss reserve fund that can cover a portion of losses on outstanding principal in the event of borrower default. In exchange for this credit enhancement, finance companies are able to offer improved financing terms and approve a broader range of small businesses for credit than they otherwise could.

Commercial buildings use 37% of the state’s electricity , more than any other sector, so reducing commercial building energy use is key to reaching California’s goal of doubling energy efficiency by 2030. Within the commercial sector, small businesses are an especially hard-to-reach segment because owners face many competing priorities, are often operating on slim margins and can be perceived as risky borrowers.

GoGreen Business is designed to make it easier for small business owners to invest in the energy improvements that will save energy and reduce their operating costs while helping California meet its energy goals.

Participating Finance Companies GoGreen Business financing is currently offered directly to eligible businesses statewide through the following finance companies: Ascentium Capital, DLL, Prime Capital Funding, Renew Energy Partners, Travis Credit Union, and Verdant Commercial Capital.

Several of these lenders offer borrowers the convenience of making GoGreen Business loan payments through their utility bill via the program’s On-Bill Repayment (OBR) feature. The GoGreen Business lender chart lists the financing products available directly to businesses statewide.

GoGreen Business allows finance companies to offer traditional equipment leases and loans, as well as several variations of service agreements, in which customers either receive guaranteed functionality or savings for a fixed monthly price or make payments based on actual energy savings.

The program offers a simplified pathway for microloans under $10,000 as well as the flexibility for innovative financing business models and partnerships. Finance companies interested in partnering with GoGreen Business should visit the become a GoGreen Business lender page on GoGreenFinancing. com or contact CHEEF at cheef@treasurer.

ca. gov . GoGreen Business enrolled its first project in July 2019, entering a pilot phase that led to an evaluation by the California Public Utilities Commission in 2023.

OBR functionality was added to the regulations in July 2021 and became available to customers in March 2022. Clean energy generation, energy storage, and EV charging measures were added to the program in 2024. For detailed information on GoGreen Business program activity, go to CHEEF Reports and Additional Materials .

GoGreen Business is available to businesses and nonprofits, lessors and lessees (tenants), that receive energy from an investor-owned utility (IOU) such as PG&E, SCE, SCG and/or SDG&E or a Community Choice Aggregator and meet at least one of the following criteria: 100 or fewer employees, less than $16 million in annual revenue, or conformity with Small Business Administration size guidelines for their industry.

Because of the credit enhancement, GoGreen Business-enrolled financing companies are able to provide financing to businesses that face challenges securing traditional financing, including newer businesses, those leasing their spaces, and those in the cannabis industry.

Through the program, California’s 4 million small businesses can finance energy efficiency measures like heat pumps, cool roofs, HVAC units, LED lighting and efficient appliances. Following CPUC authorization in 2023, GoGreen Business began offering financing for clean energy measures such as solar and battery storage, electric vehicle (EV) chargers and anaerobic digesters.

A portion of the total financed amount may consist of non-energy projects and property improvements. The program’s earliest customers have included grocery stores, dairies, office buildings and bakeries. Businesses from virtually any industry (including multifamily housing) may participate as long as they meet the eligibility requirements above.

In 2024 the GoGreen Multifamily program, which serves property owners of multifamily property units, was folded into the GoGreen Business program. Visit GoGreenFinancing. com GoGreen Business Contractors and Project Developers All GoGreen Business projects must be installed by a participating contractor.

Enrolled project developers can help businesses design projects. Current listings of enrolled contractors and project developers are updated regularly and may be found through the Find a Contractor tool on GoGreenFinancing. com.

Contractors or other energy professionals who are interested in partnering with GoGreen Business should visit the GoGreen Business c ontractor partners page on GoGreenFinancing. com or contact the contractor support team at contractors@gogreenfinancing. com .

More information for new project developer partners is here . The regulations for the GoGreen Business program were initially authorized under the emergency regulations process on Dec. 17, 2018, then were formalized through the regular rulemaking process and approved by the Office of Administrative Law on January 21, 2020.

Regulations were modified again through the emergency regulations process on July 19, 2021. Modifications included creation of a microloan pathway, expansion of eligible Energy Saving Measures, the addition of OBR, simplification of reporting, and a provision to begin referring to the program as GoGreen Business Energy Financing, or GoGreen Business, in informational and marketing materials.

Visit the GoGreen Business regulations webpage for links to the current regulations. Updates from the CHEEF Programs If you have any questions about the California Hub for Energy Efficiency Financing (CHEEF) GoGreen Financing programs, please contact cheef@treasurer. ca.

gov or (916) 651-8157.