The California Energy Commission licenses solar thermal plants above 50 megawatts and promotes solar photovoltaic installation through the Renewables Portfolio Standard, with building efficiency standards, and as a partner in the California Solar Initiative.
Leverage Diverse Financing Options: Combine debt (e., green bonds, non-recourse loans), equity (e., tax credits, grants) to optimize capital structure and reduce costs.
This brief explores the development and climate benefits of OGS; the opportunities it represents for climate finance institutions, including multilateral climate finance mechanisms; and the potential impact of new funding sources such as blended finance, carbon markets.
Rural or remote systems with grants and results-based financing blended with debt. Paygo and tariff design matter. PV with BESS for peak shaving, capacity payments, or grid stability.
In 2026, most homeowners who purchase and place in service a qualifying rooftop solar system and/or a battery of at least 3 kWh can claim a 30% nonrefundable federal income tax credit on eligible costs under the Residential Clean Energy Credit (Internal Revenue Code §25D).
Drawing on eight real-world case studies, this report provides a fresh look at how blended finance is evolving, and where it can go next. While investment needs remain significant, there is growing alignment among donors, DFIs, philanthropies, and private investors to mobilize capital.