Budderfly and Schneider Electric Plan Self-Financing Energy Overhaul for 100 U.S. Cities

Energy services company Budderfly has unveiled a plan to modernize power infrastructure in roughly 100 small and mid-size American municipalities, with project costs recovered entirely from the energy savings generated — rather than from upfront municipal spending. The initiative, called Modernizing American Cities, was introduced at the annual conference of the International City/County Management Association.

Budderfly is working with Schneider Electric, which will oversee digital integration and power management across sites. The two companies are claiming $500 million in project capital, though the financing structure has not been detailed publicly. Their combined target is a 150 MW virtual power plant assembled from distributed solar arrays, battery storage systems, smart ventilation and electric-vehicle charging infrastructure installed on city buildings and water treatment facilities.

The arrangement follows an energy-as-a-service model: Budderfly finances, owns and operates all equipment, while each city pays nothing upfront. The contractor recoups its investment from measured energy savings over a 15-year contract, after which the assets transfer to municipal ownership. Per-city investment is estimated at $4–5 million, with projected energy-cost reductions of 60–80 percent.

A contract in Cadillac, Michigan serves as the program’s pilot template. Budderfly is committing roughly $4.4 million across seven municipal buildings there, establishing autonomous microgrids for city hall and the local water treatment plant, with community energy savings projected at 65 percent.

Source: PV Magazine USA