Tallarna Wins NYSERDA Award to Stimulate Actionable LMI Building Retrofits
April 25 2024 - 11:10AM
Business Wire
- NYSERDA contract supports the deployment of Tallarna’s
software-led risk analytics and integrated insurance to provide
‘Decarbonization-as-a-Service' to LMI multifamily buildings in New
York State (NYS).
- By channeling off-balance sheet private finance into projects
through their ‘Decarbonization-as-a-Service’ offering, Tallarna
will enable the specification of a greater number of retrofit
measures.
- Tallarna’s NYS expansion is complemented by the company’s
recent launch of an ‘Equipment-as-a-Service’ offering with an
American-based blue-chip systems integrator.
Tallarna, a climate tech and finance platform for sustainable
impact, today announced that it has been awarded a $1 million
contract by the New York State Energy Research and Development
Authority (NYSERDA) to stimulate actionable building retrofits in
the Low-to-Moderate Income (LMI) rental sector. This two-year
contract will trigger a significant expansion of Tallarna’s
operations in the United States of America (USA).
Tallarna’s award comes from NYSERDA’s Innovative Market
Strategies program. The company will work in partnership with
design and solution providers including Cycle Retrotech and Tremco
CPG Inc. to roll out its ‘Decarbonization-as-a-Service' offering.
Uniquely, Tallarna’s ‘as-a-Service’ model guarantees retrofit
performance (kWh, $) for up to 30 years, increases the availability
of risk-managed private finance for landlords, and facilitates
day-one energy bill savings for tenants.
New York State’s ambitious climate laws and high proportion of
LMI rentals make it the ideal recipient of Tallarna’s mission to
deliver financial, social, and environmental sustainability for
all. In the UK, Tallarna’s creation of financeable and insurable
project business and financing cases has been transformative for
landlords. For one municipality, it has made a 3,000-home retrofit
actionable, with the majority of the capital costs being privately
financed. Once completed, this will be one of the largest social
housing retrofits of its kind in Europe.
Under New York City’s Local Law 97, all buildings over 25,000
square feet must meet strict carbon emission limits. However, with
high retrofit costs and an exhausted senior debt capacity, many
landlords struggle to fund the necessary building upgrades. The
introduction of Tallarna’s ‘Decarbonization-as-a-Service’ offering
will help overcome these barriers. The company’s IP, software-led
risk analytics and integrated Energy Savings Insurance (ESI),
de-risks projects, enables a separate ownership model for clean
energy assets, and introduces long-term, off-balance sheet private
finance. At the same time, it sets down consistent parameters
against which project income streams are valued and verified.
During this contract, Tallarna will tailor its above offering to
the New York State retrofit market. Its software platform, KESTREL,
will be recalibrated to reflect local building archetypes and
pricing – enabling it to run techno-economic feasibility
assessments and investment-grade risk analytics on projects. At the
same time, Tallarna will collaborate with global specialty property
and casualty insurer, AmTrust Financial Services, Inc. (AmTrust),
to explore how they incorporate secondary and tertiary retrofit
benefits into their co-created ESI policy. Extending ESI’s
perimeter will increase NYS landlords’ available loan-to-cost,
reduce their cost of capital, and overcome their limited senior
debt capacity. Tallarna has previously increased the scope of its
ESI policy to support the creation of ‘Equipment-as-a-Service’
offerings.
Tim Meanock, CEO at Tallarna comments: “We believe in an
equitable energy transition, one which benefits tenants, landlords,
and funders. As such, we are delighted to be working with NYSERDA
and our partners on scaling and actioning LMI retrofits. Our New
York State expansion complements our recent launch of an
‘Equipment-as-a-Service’ offering, empowering net zero throughout
the USA.”
Doreen M. Harris, President and CEO, NYSERDA said: “It is
exciting to see this innovative project move from concept to
application as New York continues prioritizing the creation and
adoption of scalable and standardized solutions for the housing
industry statewide. NYSERDA looks forward to seeing the offerings
that Tallarna and its partners develop to help improve access to
clean energy and reduce energy costs for tenants while moving us
ever closer toward New York’s ambitious climate and clean energy
goals.”
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Michelle Taute Head of Strategic Engagement press@tallarna.com
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