Pasadena Water and Power Sought Solar Loan Partner
The municipal utility aims to offer low-interest financing to help residents install solar and battery systems.
Updated on Oct. 10, 2026 in Utilities
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Pasadena Water and Power has issued a request for proposals, Project No. 2026-RFP-0399, to identify a financial institution to manage residential solar and battery storage loans. The program is designed to provide financing of up to $65,000 for local electric customers.
Why it matters
The initiative aims to lower the high upfront capital requirements for renewable energy upgrades by offering interest rates between 0% and 3%. By prioritizing low-income households, the utility intends to expand technology access while managing the administrative burden of lending internally.
Pasadena Water and Power is seeking a partner to provide loans up to $65,000 with repayment terms of 10 to 15 years. The program targets residential electric customers, with the utility planning to buy down rates to a 0% to 3% APR range.
The players
Pasadena Water and Power
A municipal utility providing water and electricity services to the residents and businesses of Pasadena.
The details
The municipal utility will use a lender with a physical branch in Los Angeles County to administer the loans and provide a secure reporting system for internal staff oversight. By subsidizing interest rates, the utility aims to bridge the gap for households that would otherwise be unable to afford the installation costs of solar panels and battery storage. Selected lenders will be required to coordinate with the utility's existing bill-assistance programs to target eligible residents.
Timeline
October 10, 2026: Pasadena Water and Power issued the request for proposals.
Market Landscape
The program follows a pattern set by California utilities to help homeowners meet the renewable energy standards mandated by the state. It reflects a shift toward municipal utilities taking on the role of financing intermediaries to lower barriers for residential renewable adoption.
Residential solar contractors operating in Pasadena should monitor the selection of a lending partner to understand how financing applications will be processed. Homeowners should prepare to cross-reference their bill-assistance status with upcoming loan eligibility requirements.
The takeaway
Local utilities are increasingly using interest-rate buy-downs to remove the primary financial barrier to residential solar adoption. Operators should monitor the Pasadena OpenGov Procurement Portal for the selection of the winning lender to clarify future payment terms for customers.
Further reading
For more information on local infrastructure and service programs, visit the Utilities section.
More information
Review the formal requirements through the Pasadena OpenGov Procurement Portal.
Source note: This article includes information reported by The Cool Down.
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