Kentucky Doctor Constructs CDFI-Funded Medical Building Powered by Rooftop Solar
Client: Lakeshore Enterprises, LLC
Client Location: Monticello, KY
CDFI: Kentucky Highlands Investment Corporation
CDFI Service Area: London, KY and 22 adjoining counties
Renewable energy and energy efficiency financing, with support from OFN’s Renewable and Energy Efficiency Financing Grant Program.
Lakeshore Enterprises, LLC, a Kentucky commercial real estate company, is the owner of a 14,694 square foot medical office building in Monticello that’s powered by the largest solar energy system in the community.
Kelly and Dr. Joseph Brown, an internist and pediatrician with offices in the facility, decided to construct the building with a rooftop solar energy system after Brown lost his vaccines and other refrigerated medicines the previous year during a local power failure. Through the experience, he realized a solar energy system was crucial to both his practice and the community he serves. However, he discovered challenges with securing financing for this new technology.
Kentucky CDFI Makes Solar Energy Possible
Due to their uncertain resale value and the physical challenges associated with recovery, solar energy systems are difficult for mainstream institutions to collateralize. This often leads to funding difficulties for small businesses looking to invest in this technology.
Fortunately, Brown was introduced to the community development financial institution (CDFI) industry and Kentucky Highlands Investment Corporation (KHIC) through a pharmacy preparing to launch a new location in the medical building. KHIC had provided the pharmacy a $300,000 loan to support its opening, which encouraged Brown to pursue options outside of mainstream finance.
KHIC was able to carefully evaluate Brown’s financing needs and provide the capital that mainstream lenders would not. Having established the OFN Kentucky Highlands Solar Energy Fund just a month prior to the loan to Lakeshore Enterprises, KHIC found the project ideally suited for financing.
“The large upfront capital investment for solar energy systems can be a barrier,” Brown said. “So this low-interest loan puts solar energy – and its accompanying savings – within reach.”
Thanks to KHIC’s investment, the building is now outfitted with 76 540W solar panels installed on the roof. Each panel includes 144 solar cells designed to harness sunlight and generate energy, with the capability for remote monitoring that allows for daily adjustments to optimize efficiency. This sophisticated system is projected to yield an impressive 49,680 kWh of energy annually and is complemented by two Tesla Powerwall batteries for effective energy storage.
The system provides essential energy to the building’s tenants, including a pharmacy, a walk-in clinic, and Brown’s offices. In total, the facility hosts 22 full-time employees. The building has even inspired one local resident to install a solar energy system on their own home.
CDFIs Help Advance Energy Efficiency In Rural Communities
Sustainable energy solutions and weatherization upgrades are often hard to come by for low-income communities, due in part to their high expense. And yet, these are the communities most often affected by climate change and left behind by mainstream lenders and other financial institutions.
Currently, 55% of OFN’s member CDFIs offer green lending products to support clean energy production and energy efficiency projects. These CDFIs operate in rural, urban, and Native communities to invest in and help them transition to renewable and sustainable energy. Additionally, they offer training to help build new job skills in clean energy.
On October 10, OFN announced the launch of its Clean Communities Investment Accelerator (CCIA) program under the EPA’s Greenhouse Gas Reduction Fund (GGRF). The GGRF aims to reduce greenhouse gas emissions and other sources of air pollution, lower energy costs, create clean energy jobs, mobilize additional private capital, and strengthen local economies.
To learn more, visit OFN’s CCIA program page for more details about how to participate.
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