Carolina Clean Energy Fund seeks county sign-off to shift Buncombe loan-loss reserve to cover fees for low‑income electrification loans

Michelle Myers, consumer lending program director with the Carolina Clean Energy Fund, presented a proposal to the subcommittee to reapply part of Buncombe County’s existing $100,000 loan-loss reserve to cover a 2.99% fee charged by the North Carolina Clean Energy Fund for income‑qualified borrowers. Myers said the change is intended to make Self-Help Credit Union’s EnergySaver loan more affordable for households at or below 50% of area median income (AMI) and to pair with an anticipated EnergySaver NC rebate that staff said will become available in the county starting June 1.

Myers said the loan-loss reserve was established in 2023 with $100,000 set aside by Buncombe County to enable residential electrification and energy-efficiency lending. At the time of the briefing she reported three loans had been made under the program and that $20,589.56 is currently allocated to Self-Help Credit Union to enable a one‑percentage‑point interest-rate reduction on qualifying loans.

Why this matters: Combining county support, a state rebate and a local low-cost loan product could expand access to electrification and efficiency upgrades for lower-income households by lowering up-front costs and monthly payments. The county fund acts as a credit enhancement that enabled Self-Help to offer a better rate, and Myers proposed using up to roughly $30,000 of the reserve to pay state program fees to increase borrower savings.

Key points from the presentation

- Program intent and scope: The reserve was intended to spur market-ready loan products for electrification and energy-efficiency projects (examples: all-electric HVAC, insulation, solar-plus-storage, and associated labor costs). Self-Help’s EnergySaver product is now available statewide; the county reserve helped bring Self-Help to the table initially.

- Proposed change: Reallocate part of the reserve to cover the North Carolina Clean Energy Fund’s administrative fee (2.99%) for households between 50% and 80% AMI, with a focus on those at or below 50% AMI who will also be eligible for the state rebate. Myers explained this would lower borrower's upfront cost and make loans more accessible.

- Expected scale and accounting: Myers presented an illustrative scenario: if the reserve pays fees for roughly 100 projects (an estimated $1 million in lending at an average $10,000 project size), about $29,900 would be used to cover fees and, depending on charge-off rates, a remainder of the reserve would still be available to cover future charge-offs. Myers said program assumptions include an expected charge-off rate of about 3%.

- Legal and contracting: Myers told the subcommittee that implementing the change would likely require a short amendment to the existing contract with Self-Help and an administrative update. County counsel said, on a preliminary read, the change did not raise immediate legal concerns but staff would double-check statutes and program eligibility details.

What the subcommittee decided and next steps

Myers asked the subcommittee for feedback rather than a formal vote. Commissioners and staff voiced general support for using the funds to increase accessibility for income‑qualified homeowners and suggested staff return with any required contract amendments and any clarifying legal analysis. Myers agreed to provide follow-up materials and to notify the county when the state rebate (EnergySaver NC) is available in Buncombe County.

Ending

Subcommittee members signaled informal support for the adjustment but took no formal vote at the meeting. Staff said they would prepare any required contract amendment and follow up with the legal review and further program details.