Low-Interest Solar and Energy Storage Loan Program

The City of Pasadena, through Pasadena Water and Power (PWP), is issuing this Request for Proposals (RFP) to partner with qualified local banks and credit unions to design and administer a Low-Interest Solar and Energy Storage Loan Program. The program aims to provide affordable financing for residential solar photovoltaic (PV) and battery storage installations, with a primary focus on low-income PWP electric customers enrolled in one of PWP's Electric Utility Assistance Programs, such as the Electric Utility Assistance Program (EUAP), CARES, or CARES Plus. A Public Benefit Fund allocation of $3,000,000 will be used to buy down loan interest rates, enabling participating financial institutions to offer target annual percentage rates (APR) between 0% and 3%. The initial program period is three years, with a goal of funding loans for 175 customers. Proposers are also encouraged to present optional loan products for non-low-income PWP residential electric customers.

The selected Proposing Entity will be responsible for originating, underwriting, funding, and servicing the loans. PWP will provide the loan buydown funds to reduce the customer's interest rate to the target level. The RFP includes a detailed scope of work outlining lender responsibilities, customer eligibility criteria, loan terms, and program administration requirements. Proposers must complete and submit the provided Pricing Table (Attachment N) detailing how the loan buydown funds would be applied to achieve the target interest rates. The RFP also includes a sample Master Services Contract, various required forms (disclosures, certifications, experience forms), and federal contract provisions due to the involvement of federal funds (including FEMA-related requirements).

Key deadlines are as follows: the Q&A deadline is August 10, 2026, at 3:00 PM Pacific Time; proposals are due by August 21, 2026, at 3:00 PM Pacific Time. All proposals must be submitted electronically through the City's online procurement portal. The evaluation process will consider criteria such as the proposer's experience with similar loan programs, proposed interest rate buydown methodology, financial capability, customer service approach, and compliance with all City and federal requirements. The City reserves the right to negotiate exclusively with the highest-ranked proposer.

This RFP is classified under finance and insurance categories (NAICS 52211, 52231, 52311). Proposers must be qualified financial institutions (banks or credit unions) authorized to do business in California. The successful proposer will play a critical role in advancing PWP's goals of increasing clean energy adoption and reducing energy burdens for low-income households in Pasadena.