D.C.-Area Credit Union Joins Solar Initiative

A credit union near Washington, D.C., is funding solar power installations at businesses by becoming an approved lender for a program sponsored by its local government.

Arlington Community Federal Credit Union of Arlington, Va. ($399.3 million in assets, 23,264 members) is the only credit union listed among 20 approved lenders for the Commercial Property Assessed Clean Energy (C-PACE) program sponsored by Virginia’s Arlington County.

The credit union on Wednesday announced it had funded a loan that will allow Rocklands Barbecue will install two solar panel systems to lower utility bills and reduce greenhouse gas emissions.

“We are thankful to receive 100% financing from ACFCU for these roof upgrades and appreciate the extensive support they provide the Arlington business community,” owner John Snedden said.

The Arlington C-PACE program is designed to connect building owners who want to invest in solar or other sustainability equipment, with private capital providers. The program allows owners of existing buildings to finance up to 100% of the cost of energy efficiency, renewable energy and water conservation projects for up to 25 years.

“We are proud to partner with Arlington County in support of Rocklands’ sustainability efforts,” Jim Wilmot, the credit union’s chief lending officer, said. “Partnerships like these show the tremendous opportunity for public-private collaboration and environmental stewardship in Arlington.”

The credit union said its involvement in C-PACE funding follows its participation in the Small Business Administration’s Paycheck Protection Program (PPP). Arlington Community originated 283 PPP loans worth $8.8 million, according to SBA records from April 2020 to May 9, 2021. The credit union said many of the businesses were not previously members of the credit union.

The program’s website said one of the features of the loans is that they don’t require owners to sign a personal guarantee because the loans are tied to the property.

At closing, a voluntary special assessment (similar to a sewer district assessment) is recorded on the improved property to secure the investment. “And because the assessment is tied to the property, and not the owner, the repayment obligation can transfer to the next owner if the property is sold,” the website says.

Ideally, the projects are designed so that energy savings exceed borrowing costs.

According to a report in March from the Solar Energy Industries Association, the United States had 2.8 million solar electric installations in December 2020 capable of generating 97.7 gigawatts, or 3% of U.S. electrical demand.

Solar capacity includes 19.2 gigawatts installed last year. The SEIA said it expects the U.S. solar industry will install more than 324 GW of capacity over the next 10 years, quadrupling the current amount of solar capacity installed.

The credit union serves people who live or work in Arlington, the City of Alexandria, the City of Falls Church and Fairfax County.