Establishment of Partnership to Provide Loan Products to Install Solar and Storage Solutions for Pasadena Electric Customers

Pasadena Water and Power (PWP) seeks to establish partnerships with financial institutions (banks or credit unions) to develop a loan program supporting the installation of solar panels and battery storage systems for eligible Pasadena customers. The program is modeled after the Massachusetts Solar (Mass Solar) Loan Program and aims to reduce the cost of solar ownership while expanding access to affordable solar financing for low-income homeowners in single-family residences. PWP will launch a pilot program with one or more financial institutions; if successful, the program will expand into a larger permanent offering accessible to a broader cohort of the utility's approximately 65,000 retail electric customers who currently receive 1.1 million MWh of energy annually.

Financial institutions will be responsible for providing loan funding and loan administration services within established parameters. Pasadena Water and Power will support the program by verifying borrower eligibility based on established criteria, offering interest rate buydowns, establishing a loan-loss reserve fund, and implementing other mechanisms to facilitate lending and reduce risk to participating financial institutions. The program aligns with PWP's strategic commitment to environmental responsibility and the City Council's Resolution 9977, which established a policy goal to source 100% of Pasadena's electricity from carbon-free sources by the end of 2030.

The RFI solicits information and partnership proposals from qualified financial institutions regarding loan product design, technical requirements, underwriting standards, and operational parameters. Respondents should provide details on their loan administration capabilities, experience with similar solar financing programs, proposed interest rates or rate-buydown structures, and risk mitigation strategies. Sample loan product considerations and technical requirements documents from the Massachusetts Clean Energy Center are provided as reference materials.

Key deadlines include a Q&A deadline of July 24, 2025, and a proposal submission deadline of August 8, 2025 at 10:00 PM Pacific Time.