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
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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
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Operating Lease

Property owner rents equipment and at the end of the lease can either renew/renegotiate or return the equipment.
MESA / ESA
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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
PPA
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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.
PACE
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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
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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,
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Capital Expenses (CAPEX)

Project funded through cash flow, reserves, capital raises, or reallocation of internal funds from the property owner
Commercial Loans,
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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
and
On-Bill Financing
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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.