Clean Energy + Bond Finance Releases Recommended Financing Model

Columbus, OH – The Clean Energy and Bond Finance Initiative (CE+BFI) today released a recommended financing model for clean energy development. The Industrial Development Bond (IDB) model leverages bond financing to achieve relatively low cost capital for renewable energy.

"As the clean energy industry matures and grows, it needs to become less reliant on federal tax credits as the key source of financing," said Lew Milford, President of Clean Energy Group. 

IDBs are a form of qualified private activity bonds, which provide tax-exempt interest rates to private borrowers who meet certain public benefit requirements. In the case of IDBs, borrowers must be small- or mid-sized American manufacturers. This financing tool can be important to clean energy development as manufacturers of energy components seek capital to expand. Manufacturers in any industry could also use IDBs to purchase more energy efficient equipment.

"Bond finance, or long-term debt, can become the bedrock finance tool for clean energy, as it is for transportation, housing, and other economic development sectors," said Toby Rittner, President & CEO of the Council of Development Finance Agencies.

The paper on the IDB model is one of a series published by CE+BFI. The series of recommended financing models is intended to provide state and local governments with a menu of options for supporting and financing clean energy development in their communities.

All of the models being researched by CE+BFI are available on the Initiative's website at Additional papers on these models will be published as they become available.

Clean Energy + Bond Finance Initiative (CE+BFI), created by CEG and CDFA, is working with finance and energy professionals across the country to find ways to increase clean energy investment. For more information, visit:

Clean Energy Group (CEG) is a leading national, non-profit advocacy organization working in the U.S. and internationally on innovative technology, finance, and policy programs in the areas of clean energy and climate change. For more information, see

Council of Development Finance Agencies (CDFA) is a national association dedicated to the advancement of development finance concerns and interests. CDFA is comprised of the leading members of the development finance community. For more information, visit