GoGreen Financing background

GoGreen Financing is the public-facing platform of the California Hub for Energy Efficiency Financing (CHEEF).

The CHEEF is administered by the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA), a state agency housed in the State Treasurer’s Office. The CHEEF and a series of energy efficiency financing pilot programs were authorized by the California Public Utilities Commission (CPUC) and developed in collaboration with the investor-owned utilities:*

  • Pacific Gas and Electric Company (PG&E®)
  • Southern California Edison (SCE®)
  • Southern California Gas Company (SoCalGas®)
  • San Diego Gas & Electric Company (SDG&E®)

CHEEF and GoGreen Financing are paid for by investor-owned utility ratepayer program funds.

Additional important participants include finance companies (credit unions, banks, and specialty lenders) who bring the private capital needed to finance energy efficiency projects, and local contractors, who install the projects.

All of us are working together to make California cleaner and more energy efficient.

Program goals

The State of California has ambitious goals to reduce greenhouse gas emissions and address climate change.

An important part of achieving these goals and improving air quality is reducing energy use in existing buildings. Billions of dollars are needed for the upgrades and there is simply not enough government or utility company funding to pay for these investments. The energy efficiency financing program seeks to:

  • bring about broader and deeper energy savings than can be realized through traditional utility rebate and incentive programs
  • make more private capital available for energy upgrades, so customers have access to financing to make their homes and businesses more comfortable and efficient
  • help traditionally underserved customers access attractive financing

Program benefits

Customers benefit by accessing financing at attractive rates and terms that allow them to upgrade their buildings, reduce energy usage and help to improve comfort and indoor air quality.

Finance companies benefit by attracting new members and customers, and being able to offer financial products with attractive terms or broadened underwriting criteria with the backing of a state-sponsored program.

Contractors and energy service companies (ESCOs) – small and large – benefit because accessible and attractive financing helps more customers take on deeper energy efficiency projects.

The State of California benefits because this financing program leads to more energy efficient buildings, bringing the State closer to meeting its energy savings goals.

Program features

Several of the pilot programs offer finance companies a credit enhancement in the form of a loan loss reserve. The loan loss reserve helps mitigate the risk for finance companies because they can access these funds in the case of a default. This allows the finance companies to offer more attractive terms – like lower rates, larger amounts to borrow, or longer time periods for repayment – than they otherwise could. The credit enhancement also allows finance companies to approve financing for a wider base of borrowers than they otherwise could– like homeowners with lower credit scores or small businesses with only a few years of operating history. Several of the financing pilot programs also offer an on-bill repayment option. This allows customers to make payments for their financing charges on their utility bill. Finance companies can seek customers all over the State, and receive payments through the bills of all four investor-owned utilities conveniently through the CHEEF infrastructure.

Pilot programs

There are four programs featured on GoGreen Financing, which were designed to service four market sectors. Use the tabs below to explore more information on those programs.

Available for:
  • 1 – 4 units of residential property, including townhomes, condos or manufactured homes. Owners or renters (with owner’s written permission)
  • Any customer who receives electricity, gas or both from one of the following investor-owned utilities: PG&E®, SCE®, SoCalGas®, SDG&E®
Credit enhancement for finance companies
  • Yes
Measures to be financed
  • At least 70% of credit-enhanced loan amount must be for Eligible Energy Efficiency Measures
  • Up to 30% of credit-enhanced loan amount can be for other home improvements
  • Lenders may finance distributed generation like solar photovoltaic (PV), but will not receive a credit-enhancement for that portion of the loan
Products supported
  • Loans and retail installment contracts up to $50,000, but individual lenders can choose to restrict loans to a lower amount
Underwriting requirements
  • Minimum credit score of 580 and maximum debt-to-income ratio of 55%, but individual lenders may set stricter criteria
Pilot status
  • Active

Learn more by visiting the residential page

Available for:
  • Affordable, income-restricted properties
  • Property must receive electricity, gas or both from one of the following investor-owned utilities: PG&E®, SCE®, SoCalGas®, SDG&E®
Credit enhancement for finance companies
  • Yes, up to $1 million of each enrolled financing will receive a loan loss reserve contribution
Measures to be financed
  • At least 70% of credit-enhanced loan amount must be for Energy Savings Measures or demand response
  • Up to 30% of credit-enhanced amount can be for other improvements
  • Lenders may finance distributed generation like solar photovoltaic (PV), but will not receive a credit-enhancement for that portion of the loan
Products supported
  • Loans, leases, energy service agreements, equipment financing agreements up to $5 million
Underwriting requirements
  • Direct to finance company or through customer's energy bill
Pilot status
  • In development

Learn more by visiting the affordable multifamily page

Available for:

  • For-profits and non-profits that meet Small Business Administration (SBA) size restrictions
  • Business must receive electricity, gas or both from one of the following investor-owned utilities: PG&E®, SCE®, SoCalGas®, SDG&E®
Credit enhancement for finance companies
  • Yes, up to $1 million of each enrolled financing will receive a loan loss reserve contribution
Measures to be financed
  • At least 70% of credit-enhanced loan amount must be Energy Savings Measures or demand response
  • Up to 30% of credit-enhanced amount can be for other improvements
  • Lenders may finance distributed generation like solar photovoltaic (PV), but will not receive a credit-enhancement for that portion of the loan
Products supported
  • Loans, leases, energy service agreements, equipment financing agreements up to $2.5 million
Underwriting requirements
  • Direct to finance company or through customer's energy bill
Pilot status
  • In development

Learn more by visiting the small business page

Available for:
  • For-profits, non-profits or government entities of any size
  • Organization must receive electricity, gas or both from one of the following investor-owned utilities: PG&E®, SCE®, SoCalGas®, SDG&E®
  • Nonresidential buildings
Credit enhancement for finance companies
  • No
Measures to be financed
  • At least 70% of financed amount must be Energy Savings Measures, demand response or distributed generation
  • Up to 30% of credit-enhanced amount can be for other improvements
Products supported
  • Loans, leases, energy service agreements, equipment financing agreements up to $5 million
Underwriting requirements
  • Through customer's energy bill
Pilot status
  • In development

Learn more by visiting the nonresidential page