The SEE Action Network Finance Workgroup aims to develop national financing mechanisms to provide scalable, low-cost capital for energy efficiency projects. The group seeks to identify resources to gradually phase out public support and integrate financing into the energy efficiency value chain. The workgroup will focus on residential, small business, and small non-profit markets that have low penetration rates and high capital costs. Deliverables include determining interventions for market segments, developing financing mechanisms, attracting private capital while identifying necessary public resources, and integrating financing with broader energy efficiency efforts.

1. SEE Action Network Finance Workgroup

2. Workgroup Goals 2 Develop national financing mechanisms that will become the basis for capital markets to provide scalable, low-cost capital to energy efficiency projects. Identify and solicit resources to accelerate market adoption and to allow gradual phasing out of public support. Integrate financing into the value chain.

3. EE Market 3 See Appendix for Graph Details

4. EE Financing Market 4 See Appendix for Graph Details

5. Financing is One of Many Market Barriers 5 Many barriers to adoption exist and may have greater sensitivity to other factors and interventions

6. Penetration Rates Inform Decision of Target Markets 6 Cost of Capital: Low High Penetration: Low High I II IV III High Penetration/Low Cost of Capital = Efficient Market High Penetration/High Cost of Capital = Mixed Market Low Penetration/Low Cost of Capital = Non-Financial Barriers Low Penetration/High Cost of Capital = Inefficient Finance Market

7. Proposed Target Markets 7 Residential, Small Business and Small MUSH: Are large markets With low penetration rates With high capital costs

8. Proposed Deliverables for Working Group 8 Determine appropriate sequencing for market interventions in respective market segments Identify and develop finance mechanisms for target market segments Attract and catalyze private capital identifying public resources as necessary Integrate financing with broader EE value chain and SEE Action Network efforts

9. Appendix: 9