Kilowatt Financial, a leading clean energy consumer finance company, announced that it recently closed a $100 million debt facility from Citi to finance energy efficiency loans for homeowners.
With facility proceeds, Kilowatt will enable homeowners throughout the United States to make energy efficient improvements to their homes through 10-12 year unsecured loans of up to $30,000. Homeowners can use the funds for a broad range of improvements, including HVAC equipment, water heaters, windows, roofing, insulation, lighting, and energy efficient appliances. The landmark transaction is designed to facilitate a securitization of the pool of loans into the capital markets, and thereby help establish a secondary market and scale energy efficiency activity. Kilowatt and Citi expect to create term asset-backed securities from the loans, making more capital available for additional homeowners to upgrade their homes.
“Through these loans, Kilowatt Financial helps homeowners increase energy efficiency and affordability, supports job growth for our trade partners, and reduces energy consumption and its environmental impact,” said Dan Pillemer, Chairman and CEO of Kilowatt Financial. “Our mission is to provide financing to help people run their homes cleanly and economically, and we appreciate Citi’s commitment to helping us make that a reality for more homeowners.”
“Citi is proud to support Kilowatt Financial and this innovative transaction,” said Marshal Salant, Managing Director and Global Head, Citi Alternative Energy Finance. “Citi is committed to financing clean energy and energy efficiency improvement projects like Kilowatt’s loan program, which will have an immediate impact on the homeowners and communities that we both serve.” Salant added: “This transaction will allow Kilowatt to launch a much-anticipated market for the securitization of consumer energy efficiency loans in the U.S. ABS market.”
Kilowatt Financial provides consumers with affordable financing choices for solar electricity and energy-efficient home improvements so that more people can run their homes cleanly and economically.