The Montgomery County Green Bank and Sandy Spring Bank Innovate to Deliver More Commercial Financing for Clean Energy in Montgomery County
The Montgomery County Green Bank (Green Bank) and Sandy Spring Bank have taken new, innovative steps in their partnership to increase lending in clean energy investment in Montgomery County, Maryland. To date, the Green Bank and Sandy Spring Bank have partnered on six projects under the Green Bank’s Commercial Loan for Energy Efficiency and Renewables (CLEER) program, including two projects that involved a new approach combining the use of the established CLEER program with a participation loan made by Sandy Spring Bank and the Green Bank. Overall, this approach provides $4.3 million in flexible funding to affordably finance clean energy projects at 8101 Connecticut Avenue Condominiums in Chevy Chase, MD, and Stewart Avenue Warehouses in Silver Spring, MD. This innovative financing structure using Green Bank capital and Sandy Spring Bank capital is the first of its kind for the partnership between the two banks.
The Green Bank and Sandy Spring Bank closed the first project under this new approach with 8101 Connecticut Avenue Condominiums to support a major energy efficiency and renewable energy project to replace aging infrastructure. The $3.2 million investment supports an overall $5.8 million energy retrofit project that will result in $25,000 of annual energy savings and the mitigation of 153 metric tons of greenhouse gas emissions annually.
“This new approach with Sandy Spring Bank shows the power of our partnership to bring new strategies that leverage Green Bank funds with private capital to support more clean energy projects in the County,” says Tom Deyo, Green Bank CEO. “This innovative structure demonstrates how the Green Bank can tailor financing opportunities based on each property’s specific needs.”
In another transaction using this new approach with the partnership, the Stewart Avenue Warehouses will use $1.2 million to finance the installation of a 412kW solar system to be installed by New Columbia Solar. The Stewart Avenue Warehouses will sell the electricity output via community solar subscriptions from the warehouse tenants and subscribers within the Pepco territory. The solar PV system will produce 515,000 kWh in its first year and generate an average of 491,000 kWh per year over the next 20 years. This energy production will lead to subscriber savings of over $88,000 per year, mitigating 348 metric tons of greenhouse gas emissions.
"Sandy Spring Bank is committed to supporting clean energy investment throughout Montgomery County. We are grateful for this collaboration with the Green Bank and the opportunity to expand our partnership to have a greater positive impact in the community,” says Ken Cook, Executive Vice President of Commercial Banking at Sandy Spring Bank.
Through this innovative partnership between the Green Bank and Sandy Spring Bank, 8101 Connecticut Avenue Condominiums and the Stewart Avenue Warehouses are able to access affordable, flexible capital to finance clean energy projects and benefit from decreasing operating expenses to generate net positive cash flow.
About the Montgomery County Green Bank
The Montgomery County Green Bank is an independent, 501(c)(3) nonprofit dedicated to helping businesses and residents affordably implement energy efficiency and clean energy solutions. The Green Bank supports the County by driving investment into energy efficiency and clean energy through lending and investment partners in the region. These efforts include working with homeowners, renters, and commercial entities of all varieties. For more information, visit www.mcgreenbank.org.
About Sandy Spring Bancorp, Inc.
Sandy Spring Bancorp, Inc., headquartered in Olney, Maryland, is the holding company for Sandy Spring Bank, a premier community bank in the Greater Washington, D.C. region. With over 50 locations, the bank offers a broad range of commercial and retail banking, mortgage, private banking, and trust services throughout Maryland, Virginia, and Washington, D.C. Through its subsidiaries, Rembert Pendleton Jackson and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of wealth management services.
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