Get Project Financing

The Challenge: Funding Your Retrofit Project

A common reason that efficiency projects don't get done are lack of available funds. Third-party financing is an option to fund your energy efficiency and renewable energy projects and increase return on investment. There are numerous financing options available; but some are complex, and navigating them takes time and effort. The good news: GreenPSF can help you understand your options and compare multiple quotes from qualified financing companies.

"Financeable" Projects

From $10,000 lighting projects to $1,000,000+ solar installations, most retrofit projects can be financed. Financing may be available to fund a single initiative, or comprehensive projects at one or more properties.

Energy Efficiency (lighting, HVAC, etc.)     Renewable Energy (solar, fuel cells, etc.)

Finding the Right Solution

Projects under $100K Projects $100K–$500K Projects over $500K
Capital Lease

Capital Lease

Similar to a loan, capital leases have fixed payments and typically require no down payment. Property owner typically assumes ownership of the equipment at the conclusion of the lease.
Operating Lease

Operating Lease

Property owner rents equipment and at the end of the lease can either renew/renegotiate or return the equipment.

Managed / Energy Services Agreement (MESA / ESA)

  • Building owner enters into a long-term contract with a third-party
  • Third-party owns, manages, and maintains the installed efficiency equipment and is repaid through energy savings
  • Eliminates the owner's upfront investment and replaces it with scheduled payments to finance company
  • Popular for public-sector projects

Power Purchase Agreement (PPA)

PPA provider owns and maintains generation equipment (e.g. solar panels) and the building owner agrees to purchase energy – typically at below-market rates.

Property Assessed Clean Energy (PACE)

  • Property owner borrows from government-issued bond to pay for the efficiency retrofit project
  • Bond is repaid by building owner through long-term special assessments levied against the borrower's property tax bills (up to 30 years)
  • May cover a wide range of project sizes (e.g., $2,000 to $2.5M)
  • Available in select local markets only
Municipal Lease

Municipal Lease

Tax-exempt alternative to cash purchase or municipal bond available to municipal/government entities.
Omitted from the table above, but potentially relevant:
Capital Expenses,

Capital Expenses (CAPEX)

Project funded through cash flow, reserves, capital raises, or reallocation of internal funds from the property owner
Commercial Loans,

Commercial Loans (aka, Traditional Debt)

  • Secured and balance sheet debt financing through commercial banks, credit unions, and other types of lenders
  • Allows for flexible spending, yet building owner's debt capacity is reduced; significant down payment is required
  • Additional options may be available through federal, state, and local governments
On-Bill Financing

On-Bill Financing

  • Utility, state or other third-party funds efficiency project and collects repayment via utility bill
  • Borrower repays the loan over the short term (typically less than three years) through a supplemental charge on the utility bill
  • Available in select local markets only

Getting Started

Like any application for credit, you'll start by preparing some background information. Most efficiency finance companies will ask for:

  • Property, ownership, and occupancy data
  • 12-24 months of utility data
  • Project scope and estimated costs
  • Anticipated cost savings / projected cash flows
  • Other financial data

To get started, discuss your project with a GreenPSF financing expert or browse our directory of qualified financing partners.