Budderfly Commits $500 Million to Modernize U.S. Municipal Energy Infrastructure
Budderfly, an Energy-as-a-Service (EaaS) company serving more than 9,000 customer locations across the United States, has announced plans to make $500 million in project capital available to help small and medium-sized municipalities modernize their energy infrastructure. The initiative, called Modernizing American Cities, aims to help local governments upgrade aging facilities, improve energy efficiency, strengthen operational resilience and manage rising electricity costs without requiring upfront capital investment.
Through the program, Budderfly will provide municipalities with an alternative approach to financing energy infrastructure improvements. Rather than relying on grants, issuing debt or allocating funds from existing capital budgets, participating municipalities can use Budderfly’s Energy-as-a-Service model to finance, deploy, own, operate and maintain energy systems. Payments are structured over time and are intended to be supported by the energy savings generated through the improvements.
To support the program, Budderfly is partnering with Schneider Electric, a global energy technology company specializing in electrification, automation and digitalization. Schneider Electric will contribute energy management and automation technologies designed to integrate different energy systems, optimize performance and improve the reliability of essential public services.
The announcement coincides with the International City/County Management Association’s annual conference, taking place in Long Beach, California. The initiative addresses challenges facing municipal governments as they seek to modernize public facilities while managing constrained budgets and increasing energy expenses.
Al Subbloie, CEO of Budderfly, said municipalities are under growing pressure to upgrade aging infrastructure while electricity costs increase and financial resources remain limited. He explained that the $500 million commitment is intended to help cities and communities begin necessary modernization projects without taking on the burden of upfront capital expenses.
Under the Modernizing American Cities program, Budderfly and Schneider Electric will collaborate with municipal leaders to identify infrastructure priorities, evaluate potential improvements and implement projects tailored to local requirements. The companies aim to help communities improve energy cost predictability, strengthen the resilience of public facilities and advance sustainability objectives.
Potential projects may include solar power installations, battery energy storage systems, electric vehicle charging infrastructure, heating, ventilation and air conditioning upgrades, energy-efficient lighting and digital technologies for monitoring and optimizing energy consumption. The specific combination of technologies will depend on each municipality’s infrastructure requirements, operational priorities and long-term energy objectives.
Schneider Electric’s involvement will focus on integrating these technologies and helping municipalities manage their energy systems more effectively. The company will provide electrical equipment, intelligent controls and energy management capabilities designed to coordinate system operations and support reliable service delivery.
Michele Hix, Vice President of Strategic Customers, North America Operations at Schneider Electric, emphasized that municipal energy projects must deliver more than electricity savings. Critical facilities, including wastewater treatment plants and city halls, must continue operating when the electrical grid experiences disruptions or other challenging conditions.
Hix noted that Budderfly’s financing model can help municipalities move forward without diverting limited capital budgets. Schneider Electric’s technology will support the integration and optimization of energy systems, helping public facilities use electricity more efficiently while improving the reliability of essential services.
The initiative comes as local governments face increasing financial pressure from higher electricity prices and growing infrastructure requirements. According to the U.S. Energy Information Administration, average commercial electricity prices nationwide increased by approximately 6% during the first seven months of 2026 compared with the corresponding period in 2025. Ohio, Virginia and Maryland experienced increases of 20% or more during the period.
Municipal budget constraints add another challenge. The National League of Cities reported that 90% of surveyed cities experiencing growing infrastructure needs also indicated that those requirements were negatively affecting their budgets. These conditions can make it difficult for local governments to finance modernization projects while maintaining existing public services.
Budderfly’s partnership with Schneider Electric builds on their previous collaboration with the City of Cadillac, Michigan, where the companies are working to improve energy infrastructure across seven municipal facilities.
Budderfly is investing approximately $4.4 million in the Cadillac project, which includes upgrades to city hall and the wastewater treatment plant, among other facilities. Planned improvements encompass solar generation, battery storage, upgraded heating and cooling equipment, energy-efficient lighting, electric vehicle charging infrastructure and integrated microgrid capabilities.
The microgrid-related improvements are designed to help maintain essential municipal operations during electrical grid outages. Schneider Electric’s electrical hardware and intelligent controls will connect the different systems, enabling monitoring, control and optimization across the participating facilities.
The project is intended to improve energy performance, reduce operating expenses and strengthen the resilience of municipal infrastructure. Cadillac is funding the improvements through operational savings under the arrangement, without requiring an upfront investment from taxpayers.
Marcus Peccia, City Manager of Cadillac, said the collaboration offers the city an opportunity to take a more efficient and resilient approach to public service delivery. He highlighted the benefits of modernizing critical infrastructure, improving the reliability of services residents depend on and making energy costs more predictable without an initial taxpayer-funded expenditure.
Building on its decade-long track record of serving more than 9,000 commercial customer locations, Budderfly plans to extend its Energy-as-a-Service model to municipalities throughout the United States. The company intends to tailor each project to the participating community’s infrastructure needs, financial considerations and operational priorities.
In addition to the municipal program, Budderfly is participating in Schneider Electric’s Accelerating Resilient Infrastructure Initiative through its Energy-as-a-Service offering. The initiative brings together nearly 50 industry partners to help communities across the United States finance and deploy resilient energy infrastructure.
The broader collaboration reflects an effort to address infrastructure modernization challenges by combining financing solutions with energy management technology. By reducing the need for upfront capital expenditure, the participating companies aim to make energy improvements more accessible to municipalities that might otherwise postpone projects because of budget limitations.
For local governments, potential benefits include improved energy efficiency, better management of operating costs, enhanced infrastructure reliability and progress toward sustainability targets. The projects may also provide municipalities with greater flexibility to prioritize essential upgrades while preserving financial resources for other community requirements.
Municipal leaders interested in participating in the Modernizing American Cities program can contact Budderfly through its official website to discuss their energy infrastructure needs and project priorities. The company will work with interested communities to explore potential improvements and determine how its Energy-as-a-Service model could support their modernization plans.
With $500 million in planned project capital and Schneider Electric’s energy technology capabilities, Budderfly is positioning the program as a financing and infrastructure solution for municipalities seeking to modernize public facilities while controlling costs and strengthening the resilience of essential services.
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