(The Center Square) – Michigan has launched a new effort to accelerate public-private investments in renewable energy projects by helping community finance institutions get money from federal climate grants to finance new “green” loans.
The Michigan Climate Investment Accelerator will assist community lenders in applying for money from the Greenhouse Gas Reduction Act fund via five national nonprofit organizations that were awarded $6 billion in GGRF this year.
Community lenders whose applications are accepted can then use the federal money to finance and make available “green” loans to Michigan households and businesses for energy efficiency improvements, such as electric vehicle chargers and electric heat pumps.
“Workers across Michigan are rolling up their sleeves and helping us invest in the future by expanding Michigan’s clean energy leadership,” Lieutenant Gov. Garlin Gilchrist II said Friday. “The Michigan Climate Investment Accelerator will help us continue that work, investing $11 million and unlocking billions more from the Biden-Harris Administration’s Inflation Reduction Act to finance clean energy technologies, lower energy costs, and build on Michigan’s momentum as a climate leader.”
The effort also involves the state spending $11 million from the Michigan Climate Investment Fund to provide matching grants and technical assistance for community lenders to apply for and deploy any GGRF funding received. The Michigan Climate Investment Hub, a public-private partnership created through support from The Kresge Foundation, will also assist in streamlining community connections and award implementation.
“This partnership recognizes the critical role community lenders will play in climate friendly economic development, enabling low-income and disadvantaged communities to access the capital they need to equitably and actively participate in the energy transition,” GGRF Director David Wiawsky said.