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New York’s Green Bank: A Brief Introduction

New York has been working to move closer and closer to its goal of generating 50 percent clean energy by 2030. At the heart of this movement is New York’s Green Bank. What is the Green Bank, exactly? As a New York resident you probably have heard of New York’s State Energy Research & Development Authority (NYSERDA). The Green Bank is a Division of NYSERDA that is tasked with increasing investments in New York’s clean energy markets within the private sector.

Through financing and consultation to private entities, the Green Bank is able to further advance New York in its goal to reduce carbon emissions, as seen with Governor Cuomo’s plan to reduce emissions 40% by 2030 and 80% by 2050.  Last year, the Green Bank provided $25 million in funding to fuel cell manufacturer Plug Power, which helped to both create jobs and diversify the energy market.

The Green Bank helps companies and organizations who want to expand their access to clean energy but lack the resources due to financial and market barriers.  Through portfolio management, funding, and financial consulting, the Green Bank is able to provide support through various methods including warehouse provider, credit enhancement, and lending. All entities that have recognized success in the clean energy sector are able to request the Green Bank’s support, provided that they use proven clean energy technology.

Other states outside of New York have also started their own Green Banks, including Connecticut, California, and Hawaii. Green Banks are integral to reducing green house gas emissions and sustainable energy costs. Without New York’s Green Bank the state’s private sector would be unable to achieve its full potential to become sustainable, and to reduce their environmental footprint.