California Alternative Energy and Advanced Transportation Financing Authority

GoGreen Home: Additional Funding to Expand Financing Eligibility

Update: February 2022

As of April 1, 2022, additional funding for the GoGreen Home Energy Financing program will be available through the Technology and Equipment for Clean Heating (TECH) Initiative. This funding will expand the equipment and related costs eligible for credit enhancements through GoGreen Home based on fuel source, opening a simplified pathway to decarbonization for more California residents.


The California Hub for Energy Efficiency Financing (CHEEF) was originally authorized by the California Public Utilities Commission (CPUC) and funded through Public Purpose Program (PPP) funds paid for by ratepayers of the California Investor-Owned Utilities (IOUs). The California IOUs are Pacific Gas & Electric, Southern California Gas Company, San Diego Gas & Electric and Southern California Edison. The funds are used for administration as well as to offer credit enhancements to participating lenders that enable them to offer more advantageous terms to borrowers for energy efficiency loans than they otherwise could. CPUC rules and the source of funding have meant CAEATFA’s regulations for the GoGreen Financing programs have restricted participation to customers of the IOUs. Additionally, the regulations have limited the eligibility of energy efficiency measures for which finance companies can receive a credit enhancement, as well as the loan principal for which lenders can receive reimbursement in the event of a default, to those utilizing a fuel provided by an IOU. This has made impactful but costly energy efficiency upgrades like heat pumps virtually inaccessible for the millions of Californians served by a gas IOU but an electric Publicly Owned Utility or cooperative (POU). These limitations have also resulted in a web of eligibility complexity based on utility jurisdiction that frustrates contractors and lenders, and which CAEATFA believes has hampered participation in GoGreen Home.

(Follow the links for more information about GoGreen Home and the California Hub for Energy Efficiency Financing, or CHEEF.)

In August 2021, in response to CAEATFA seeking solutions that would enable simpler programs with more uniform eligibility across the state, the CPUC issued Decision 21.08.006. This decision authorized CAEATFA to incorporate additional sources of funding into the CHEEF, beyond the PPP IOU ratepayer funds, and to utilize these funds to expand eligibility to non-IOU customers and/or expand the types of measures for which lenders are eligible for a credit enhancement to non-IOU fuel utilization measures.

Per GoGreen Home Program Regulations, if additional funding becomes available from a source outside of the PPP IOU ratepayer funding, CAEATFA will invite stakeholders to join an Interested Parties list as well as publish an explanation of how the funding expands eligibility for GoGreen Home.

Interested Parties List

Sign up to join the “CHEEF Additional Funding” Interested Parties list for more information about TECH funding and to be notified when CAEATFA has access to additional funding to expand financing eligibility.

About TECH

The TECH Clean California Initiative (TECH) is a market transformation program designed to accelerate adoption of commercially available, low-emission space and water heating equipment technologies (primarily heat pump HVAC systems and heat pump water heaters). TECH was developed as part of California Senate Bill 1477 and is funded by California gas corporation ratepayers under the auspices of the California Public Utilities Commission. The TECH implementation contract was awarded to Energy Solutions in November 2020. For more information on the TECH initiative, please visit the TECH Clean California homepage.

CAEATFA and TECH Agreement to Collaborate

CAEATFA and Energy Solutions entered into a Memorandum of Agreement (MOA) on February 7, 2022. Through this collaboration, Energy Solutions will provide TECH funds for credit enhancements as well as administrative support for GoGreen Home projects for properties receiving gas service from an IOU and electric service from a POU. Energy Solutions will provide a maximum of $1.5 million toward the collaboration with CAEATFA and the GoGreen Home program. This amount includes an initial firm commitment of $500,000 in credit enhancements. Additional credit enhancement funds beyond the first $500,000 will be committed by Energy Solutions upon observation of sufficient deal flow to justify additional funds. Energy Solutions’ commitment to contribute funds for credit enhancement will expire on July 1, 2033.

Incorporation of TECH funds will expand financing eligibility to electric energy efficiency measures that have until now been ineligible for credit enhancement under GoGreen Home program limitations. This expansion will therefore reduce complexity for participants, allow GoGreen Home to serve more customers across broad areas of the state, and ultimately realize greater energy savings and progress toward building energy efficiency and decarbonization goals.

Funder Criteria

Energy Solutions is providing funding for credit enhancements available to lenders for loans that:

  • Upgrade a property served by a gas IOU and electric POU
  • Contain measures on the CAEATFA list of Eligible Energy Efficiency Measures that correspond to an electric fuel source (per GoGreen Home Regulations Section 10009.10(j))
  • Otherwise meet eligibility requirements for GoGreen Home

Eligibility Expansion

Without incorporation of TECH funding, the GoGreen Home Regulations require that 70% of the loan value that receives a credit enhancement, or “Claim-Eligible Principal” (meaning it qualifies for reimbursement in the event of a charge-off), be for measures that correspond to an IOU fuel source.

With incorporation of TECH funds, the Claim-Eligible Principal may now also include the following, if the borrower receives gas service from an IOU, regardless of electricity provider:

  • Eligible Energy Efficiency Measures that correspond to an electric fuel source per Section 10091.10(j) of the GoGreen Home Regulations;
  • Legal and practical costs of installation (such as the cost of procuring permits or upgrading electrical panels per Section 10091.1(s)(2)(A);
  • Additional related home improvement costs per Section 10091.1(s)(2)(B).

GoGreen Home expansion of measures eligible for credit enhancement with incorporation of TECH funding

Customer’s Gas Provider Customer’s Electric Provider
  IOU POU or Co-op
IOU No change. Claim-Eligible Principal may fund any combination of gas or electric measures. Limit on electric measures comprising 30% of Claim-Eligible Principal will be removed. Lenders may receive a credit enhancement for electric measures up to the loan maximum.
POU or
No change. Gas measures remain limited to 30% of Claim-Eligible Principal. TECH funding cannot be spent in non-IOU gas territory. No change. Customers remain ineligible for the Program as they are not served by an IOU.