California Expands Financing for Home Energy Upgrades Through $30 Million Partnership

California State Treasurer Fiona Ma on Oct. 14 announced a $30 million agreement with the California Energy Commission to enhance access to the GoGreen Financing program for home energy efficiency upgrades. The partnership ensures that more than 7 million customers of publicly owned utilities continue to qualify for the GoGreen Home residential program. The agreement will run for the next five years, allowing more credit for consumers to purchase efficient and clean energy appliances for their homes.

The California Alternative Energy and Advanced Transportation Financing Authority oversees the GoGreen Financing program, which operates by creating a credit enhancement in the form of a loan loss reserve for finance companies that lend consumers for clean energy and energy-efficient appliances. The reserve offers coverage if borrowers default, so that lenders continue offering attractive terms, such as lower interest rates and longer repayment periods. As customers gradually pay back the loans, the reserve will be available for future home loans. At present, nine credit unions and financial institutions have partnered with GoGreen to offer loans, with more lenders joining in 2025.

This program also helps reduce inequality by providing financial access to those who would otherwise struggle to obtain loans, such as low-income customers, small businesses, and customers with low credit scores. Under the partnership, more than 7 million customers of publicly owned utilities can apply for GoGreen loans to purchase energy-efficiency appliances like heat pumps for space and water heating, solar panels, and electric vehicle chargers.

The initiative is open to both homeowners and renters with a wide range of residential properties such as single-family homes, townhomes, condos, or manufactured homes. Small businesses earning less than $16 million with fewer than 100 employees can also apply for GoGreen loans. Eligible residents can receive up to $75,000 in financing for energy upgrades, while eligible small businesses can receive $5 million.

The GoGreen initiative is among several policies and initiatives in California to decarbonize buildings and reduce energy consumption by providing more access to energy-efficient technology. The commission runs the Equitable Building Decarbonization Program, which directs fifty percent of its funding to under-resourced communities to install more energy-efficient technology. California recently adopted the 2025 Building Energy Efficiency Standards to advance decarbonization of buildings.