Flexible Financial Credit Agreements for Solar Adoption
Along with the New York State Energy Research and Development Authority (NYSERDA), NREL is leading the discovery, design, and advancement of flexible financial credit agreements (FFCAs) to enable solar adoption for low-to-moderate-income (LMI) customers.
It's an effort to transform solar energy into a benefit or asset that’s available to everyone, regardless of income level, credit history, or other socio-economic barriers.
FFCA is a broad term used to describe a suite of solar products with innovative features not currently offered in traditional solar financing programs. These features could include contracts that can be easily transferred from person to person or from one jurisdiction to another. Another version of FFCAs could be integrated into employee benefits packages or allow solar savings to be applied—and multiplied or rounded up—to a variety of self-investment areas such as health or educational programs. Other forms of FFCAs might address periodic income fluctuations and be designed around short-term contracting mechanisms.
These are just a few FFCA ideas on the table to meet the ultimate goal of offering LMI customers a menu of innovative, flexible, and affordable financing products to meet their unique needs.
This FFCA product suite requires rethinking current solar finance practices toward a future with affordability, customer choice, and product flexibility as the ambitious but achievable end game.
Flexible Financial Credit Agreements Project Plan
Establish Advisory Council
2 months
Discuss with key FFCA enablers, LMI market experts, and other stakeholders
Thesis Formation
4 months
FFCA opportunity assessment, barrier identification, product classification
Assemble Coalition of Experts
1 year
Thought leadership gathering to accelerate FFCA development opportunities
Execute Proof of Concepts
18 months
Research and demonstration initiatives to learn by doing
Launch Transition Plan
2 years
Transfer FFCA leadership to partner to carry out long-term FFCA mission
Join Our Network of Experts and Contributors
To pursue the FFCA vision, NREL and NYSERDA are mobilizing a wide-ranging network of solar industry advisors, financing innovators, technologists developing digital solutions, social scientists, nonprofits, LMI experts, and others.
If you're interested in sharing your ideas and expertise to support FFCA development, contact David Feldman.
Publications
The publications highlight additional FFCA models.
Model Brief: Blockchain, NREL Fact Sheet (2022)
Model Brief: Employer-Sponsored Solar Benefits, NREL Fact Sheet (2022)
Model Brief: Low-Interest Secured Flex Loans (LISFL), NREL Fact Sheet (2022)
Model Brief: Solar Revenues to Retire Arrears, NREL Fact Sheet (2022)
Model Brief: Tariff On-Bill Financing, NREL Fact Sheet (2022)
NREL Low- and Moderate-Income Solar Flexible Financing Credit Agreement Rubric, NREL Fact Sheet (2022)
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