Energy Efficient Equity

About Energy Efficient Equity

Initially founded as Energy Efficient Equity (E3) in 2015, the specialty financing company rebranded as FortiFi Financial, Inc. in January 2020. The firm is a provider of Property Assessed Clean Energy (PACE) financing, which allows homeowners and businesses to fund energy efficiency, renewable energy, water conservation, and disaster resiliency improvements. These upgrades can include solar panels, HVAC systems, windows, roofing, and seismic retrofits.

The business model is centered on providing financing with no upfront costs, with repayment made over time through a voluntary special tax assessment on the property. Eligibility for FortiFi's financing is primarily based on the equity in the property and the owner's ability to pay the assessment, rather than their credit score. This structure is designed to make costly but beneficial property upgrades more accessible. The installation of improvements is handled by third-party contractors, not by FortiFi itself.

FortiFi operates as a program administrator for PACE programs on behalf of public agencies in California and Florida. It has expanded its reach significantly by joining the California Statewide Communities Development Authority (CSCDA) Open PACE Program and launching in Florida in mid-2019 under the Florida PACE Funding Agency (FPFA). The company secures capital for its originations through the capital markets, including the issuance of asset-backed securities (ABS) and PACE bonds. For instance, in June 2019, as E3, it closed its first securitization transaction of approximately $169 million, and in May 2023, it raised $185.6 million in PACE bonds.

The company emphasizes consumer protection, implementing procedures such as live phone calls to confirm customer understanding of financing terms and project completion before paying contractors. It works with a network of pre-screened contractors who receive training on consumer protection. The CEO as of January 2020 was Brad Knyal.