New York’s Green Bank is showing that investing in green technologies and reducing emissions is profitable. The state-run bank, which launched in 2014, said that in the fiscal year of 2016-2017 it generated $2.7 million in positive net income on $291.6 million in investments in clean energy—and that it achieved the earnings a year ahead of schedule.
"New York is taking aggressive action to reduce our carbon footprint, and through the nation's largest green bank, we continue to invest in smart growth strategies that will help make our communities cleaner, greener and stronger than ever before," said Gov. Andrew Cuomo (D). The bank is part of the state’s 10-year, $5 billion Clean Energy Fund. “As the federal government continues to sidestep funding and support of critical clean energy programs, New York will continue to lead the fight against climate change, while working with communities across the state to ensure sustainable initiatives support future generations of New Yorkers."
In all, the bank has made investments in 18 companies. Nine of which are New York based, seven which are not—but were able to expand their presence in the state, and two new transactions that closed after March 31. The revenue the bank is generating will also be reinvested in future transactions helping ensure more clean energy development in the state. Its investments have supported microgrids, community solar, residential energy efficiency, residential solar, commercial and industrial solar, and more.
"We’re pleased by the accomplishments we’ve achieved as an organization, and the positive net income and transaction execution milestones send a strong signal to the marketplace that sustainable infrastructure provides attractive investment opportunities," said Alfred Griffin, NY Green Bank President. "We have built a high-quality organization with a dedicated team of experts in their respective fields, industry-leading sustainable infrastructure finance capabilities, and deep technical knowledge, all of which have enabled us to achieve these milestones today."
Including the new investments the bank’s investment portfolio had reached $346.1 million by March 31. That investment portfolio is expected to leverage a total investment of $1 billion to $1.4 billion into New York’s clean energy marketplace over the lifetime of the projects it’s supporting.
The most recent transactions were with Sunrun, which has accelerated the installation of over 5,000 solar systems on homes across New York and Motivate International Inc. The latter is the bike share operator of New York's Citi Bike program. It received nearly $50 million from the bank in separate agreements and will use the financing to install 2,000 new bikes in low-to-moderate income neighborhoods in New York City.Tweet