Transformative Technology Paves the Way for Sustainable Finance Partnership with Halitra for Commercial Building Decarbonization
UMassFive and climatetech startup Halitra are proud to announce receipt of a $650,000 competitive grant to pilot innovative climate finance approaches from the Massachusetts Clean Energy Center (MassCEC).
MassCEC seeks to support innovative financing solutions to support commercial building retrofit projects that put buildings on a path to be consistent with Massachusetts net zero 2050 greenhouse gas goals by implementing best practices for efficiency and incorporating solar, storage, and other solutions where appropriate.
“Achieving the state’s emissions reduction target will require energy efficiency interventions into nearly every building,” said Massachusetts Clean Energy Center CEO Dr. Emily Reichert. “Many commercially available finance products do not adequately address financial hurdles, which inhibits lenders from being able to finance building retrofit projects. MassCEC is proud to award this grant to UMassFive and Halitra so they can pioneer an innovative approach to building decarbonization.”
Halitra's groundbreaking software is at the intersection of cleantech and fintech, providing a mechanism for UMassFive to rapidly compare local buildings to thousands of others when considering energy upgrades. Halitra's platform enables stakeholders to identify and capitalize on energy-saving initiatives that not only contribute to a greener future but also promise profitability. By bridging the gap between environmental responsibility and financial viability, Halitra empowers organizations to make strategic, sustainable and profitable lending decisions that their clients want.
This pilot builds on the tremendous success of the state’s Mass Solar Loan program that focused on expanding access to residential solar and supported nearly 6,000 new solar installations throughout the Commonwealth between 2015 and 2020. UMassFive was a financing leader for that program, more than doubling the production of any other lender and successfully reaching underserved populations. Over 70% of UMassFive solar loans through the Mass Solar Loan program went to low-income qualified homeowners.
“What we did for consumers with the Mass Solar Loan, we want to do for building owners in this pilot,” explained UMassFive CEO/President, Rich Kump. “Building owners will benefit from an interest rate buydown of 1.00%, no origination costs, 100% financing, and flexible underwriting. We expect that building owners in the Commonwealth will eventually need to meet certain sustainability metrics, and frankly, we would rather see that accomplished with incentives, not penalties.”
Thor Jensen, CEO and Co-Founder of Halitra, staunchly advocates that achieving meaningful climate change requires creating profitable avenues for financial institutions. UMassFive's adoption of Halitra's vision ushers in an era of innovative green products for their customers. In Thor's words, "We are thrilled about UMassFive embracing Halitra's vision and their continued support for the development of new sustainable financial products. This represents a win-win for everyone involved."
This two-year program will officially launch later this summer. Massachusetts building owners interested in participating in this program are invited to email GreenBuildings@umassfive.coop for additional information.
Massachusetts Clean Energy Center (MassCEC) is a state economic development agency dedicated to accelerating the growth of the clean energy and climatetech sector across the Commonwealth to spur job creation, deliver statewide environmental benefits and to secure long-term economic growth for the people of Massachusetts. Since 2010, MassCEC has awarded over $650 million in programs and investments and attracted more than $2.5 billion in private and federal capital. The organization has connected nearly 6,000 college and vocational interns with over 600 clean energy and climatetech employers. For more information about MassCEC, please visit masscec.com.
UMassFive College Federal Credit Union (UMassFive) was established in 1967 and serves the University of Massachusetts, as well as the Five College System and over 50 other local organizations that share their community-based values and vision for a sustainable local economy. As a non-profit financial cooperative, UMassFive’s earnings are returned to their membership in the form of better rates, lower fees, and improved services and banking technology. The Credit Union offers a full range of financial products, including personal and business banking and lending, retirement planning and investments, and insurance. UMassFive has over 49,600 members, six branches, and assets of over $700 million.
Headquartered in Vancouver, Halitra specializes in software solutions tailored for financial institutions, facilitating the seamless integration of energy efficiency enhancements into their lending procedures. Through strategic partnerships with lenders, Halitra actively promotes the adoption of environmentally sustainable products, particularly targeting small commercial and residential properties. Halitra was recognized as a Top 5 BC climatetech startup to watch and winner of the Energy DeltaClimeVT Business Accelerator. For media inquiries please contact kamal.singh@halitra.com. For more information about Halitra, please visit the Halitra LinkedIn profile.