General Information and Structure
The Green Energy Market Securitization (GEMS) program is administered by Hawaii Green Infrastructure Authority (HGIA). GEMS is designed to make clean energy improvements, such as solar PV, affordable and accessible for consumers, expanding the market to reach underserved segments such as low- moderate credit homeowners renters and nonprofits. One hundred and fifty million dollars of initial capital for the program was raised through state-issued "rate-reduction" bonds. Additionally, all Hawaiian Electric customers support the program through a small fee (initially $1.29/month for residential consumers) on their electric bills. For homeowners on the islands of Oahu, Maui, Molokai, Lanai and Hawaii, the GEMS program offers direct financing for solar PV installations with a flat 5.99 percent APR interest rate, fixed for 20 years. Flexible underwriting includes 100 percent financing, credit scores as low as 600, and no debt-to-income ratio requirements. Multifamily loans are available under the GEMS program. These loans are based on a co-lending structure with a capital stack of private and public debt. This long-term financing tool is designed to complement conventional bank/credit union financing and provide low-cost, cash-flow friendly capital.