Figtree Financing

The financing is structured as a voluntary assessment lien on the property, which is then repaid over the long term (typically 5 to 20 years) through installments on the property tax bill. This mechanism allows property owners to fund upgrades with no initial cash outlay, overcoming a significant barrier to adoption. The model is designed so that the savings on utility bills can exceed the cost of the assessment, potentially creating positive cash flow for the property owner from the outset. Because the debt is tied to the property, the repayment obligation can transfer to the next owner if the property is sold.

Figtree serves a diverse client base that includes residential and commercial property owners. The commercial segment encompasses a wide range of property types such as office, industrial, retail, hotels, agricultural, multi-family residential, nonprofits, and houses of worship. The company finances a broad spectrum of improvements, including but not limited to, solar panel installations, HVAC systems, boilers, chillers, lighting upgrades, building controls, energy-efficient windows, cool roofing, and water-saving plumbing. Project financing ranges from as little as $5,000 to several million dollars.

A significant milestone for the company occurred in March 2016, when it secured a $30 million Series A funding round led by private equity firm LL Funds. This capital was intended to expand its commercial PACE platform and support the launch of a residential PACE program. Figtree has been instrumental in the PACE market, including helping to legislate California Assembly Bill 1883, which enabled a new PACE-financed prepaid Power Purchase Agreement (PPA) product for nonprofits. This structure allows tax-exempt organizations to benefit from solar tax credits by involving a third-party owner who can monetize them, thereby reducing project costs significantly. The company operates as a public-private partnership, administering PACE programs for local governments and joint powers authorities like the California Enterprise Development Authority (CEDA). Keywords: PACE financing, property assessed clean energy, commercial PACE, residential PACE, clean energy finance, energy efficiency loans, renewable energy funding, water conservation financing, green building finance, solar financing, sustainable infrastructure, assessment lien, property tax financing, Mahesh Shah, prepaid PPA, energy upgrades, cleantech finance, environmental finance, project finance, alternative lending