Budderfly and Schneider Electric Announce $500 Million US Municipal Energy Modernisation Programme

US energy technology company Budderfly has announced plans to make $500 million in project capital available to modernise municipal energy infrastructure across the United States, in partnership with Schneider Electric. Announced on 20 October 2026, the Modernizing American Cities programme will help small and medium-sized municipalities upgrade public facilities without requiring upfront capital expenditure or taking on additional debt. The initiative will support energy efficiency, distributed renewable energy, battery storage and infrastructure resilience through Budderfly's Energy-as-a-Service model.

The programme comes as US municipalities face rising electricity costs and pressure to upgrade ageing infrastructure. According to figures cited by Budderfly from the US Energy Information Administration, average commercial electricity prices increased by approximately 6% during the first seven months of 2026 compared with the same period in 2025. Ohio, Virginia and Maryland recorded increases of 20% or more. Budderfly also cited National League of Cities research indicating that 90% of surveyed cities experiencing growing infrastructure needs reported negative impacts on their budgets.

 

Energy-as-a-Service Model Removes Upfront Capital Requirements

 

Budderfly's financing model is designed to allow municipalities to modernise energy systems without drawing on existing capital budgets. Under the arrangement, Budderfly finances, installs, owns, operates and maintains the infrastructure, with participating municipalities paying over time through an arrangement supported by operational energy savings. The approach aims to reduce the financial barriers that can delay energy efficiency improvements and infrastructure upgrades, particularly in smaller communities with limited capital resources.

Depending on municipal requirements, projects may include rooftop solar installations, battery energy storage systems, electric vehicle charging infrastructure, upgraded heating, ventilation and air conditioning systems, and energy-efficient lighting. The model can also incorporate technologies that monitor electricity consumption and optimise building performance. While Budderfly has committed to making $500 million available for eligible projects, the announcement does not specify how much capital has already been allocated, the number of municipalities expected to participate or the contractual terms governing future projects.

 

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Schneider Electric to Support Energy Management and Grid Resilience

 

Schneider Electric will provide energy management, automation and digital control technologies to integrate the systems installed through the programme. These technologies are intended to improve energy performance, coordinate distributed energy resources and support the reliability of essential municipal services. For facilities such as wastewater treatment plants, administrative buildings and emergency infrastructure, resilience improvements can be particularly important during electricity outages and extreme weather events.

Michele Hix, Vice President of Strategic Customers, North America Operations at Schneider Electric, emphasised the importance of combining efficiency with operational reliability. "When a city upgrades a facility, saving energy is only part of the job. A wastewater plant or city hall also has to serve residents when conditions get tough," she said. Schneider Electric's participation is also connected to its Accelerating Resilient Infrastructure Initiative, which brings together nearly 50 industry partners to support the financing and deployment of resilient energy systems across US communities.

 

Michigan Project Demonstrates Municipal Energy Upgrades

 

The programme builds on an existing partnership between Budderfly, Schneider Electric and the City of Cadillac, Michigan. Budderfly is investing approximately $4.4 million to modernise energy infrastructure across seven municipal facilities, including city hall and the city's wastewater treatment plant. The project incorporates solar generation, battery storage, HVAC and lighting upgrades, electric vehicle charging and integrated microgrid capabilities intended to support essential services during grid disruptions.

Schneider Electric's hardware and intelligent control systems will coordinate energy assets across the facilities, enabling monitoring and optimisation of electricity consumption and system performance. Cadillac is financing the improvements through operational savings without upfront taxpayer expenditure. Marcus Peccia, City Manager of Cadillac, said the project would help the city "modernize critical infrastructure, strengthen the reliability of services residents rely on every day and bring greater predictability to our energy costs." The announcement does not provide quantified energy savings or emissions reduction results for the project.

 

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Financing Could Accelerate Municipal Energy Decarbonisation

 

Budderfly has spent approximately a decade providing Energy-as-a-Service solutions and currently serves more than 9,000 commercial customer locations across the United States. The new programme extends its existing business model into municipal infrastructure, where ageing buildings, electricity costs and budget limitations can make energy modernisation difficult. The company plans to work directly with local governments to identify projects based on energy requirements, operational priorities and infrastructure resilience needs.

Al Subbloie, Chief Executive Officer of Budderfly, said, "With this $500 million commitment, we aim to help cities and communities modernize their energy infrastructure without requiring them to take on upfront capital costs." The initiative could help municipalities advance energy efficiency and distributed energy projects without conventional capital funding arrangements. Its eventual impact will depend on project uptake, the savings achieved and the operational performance of installed systems. The $500 million represents capital made available for future projects rather than completed infrastructure investment.

 

Source: Budderfly