Commercial Financing

So, your organization is interested in buying renewables energy solution to reduce operating cost and address climate change and reduce emissions. you're probably wondering where to start. Don't worry, clean power finance isn't as complicated as you may think. We'll walk you through the most popular clean power finance options as well as sustainable energy trends for today and tomorrow. However, there are so many renewable energy financing options available renewable energy credits, renewable energy power purchase agreements (PPA agreements), virtual power purchase agreements (VPPAs), on-site and self-owned projects, green bonds, etc.

Energy efficiency and renewable energy can reduce operating costs, cut greenhouse gas emissions, and improve the resiliency of buildings. However, upfront costs are a major barrier to getting these projects done. Many organizations don't have the capital available to pay for the equipment, installation, and servicing of energy efficiency and renewable energy upgrades out of pocket. Even those with plentiful cash may prefer to spend it on their core operations instead.

That's where financing comes in. In the broadest terms, "financing" simply means using someone else's capital to fund projects in your facilities and then paying it back over time. In practice, there are a variety of strategies and structures to accomplish this, each with their own pros, cons, and nuances. These are often called financing products, financing mechanisms, or, as we call them financing options. They range from simple options like loans and leases, to more specialized options designed to overcome specific challenges, such as property assessed clean energy (PACE) or efficiency-as-a-service.

As demand for energy efficiency and renewable energy financing has grown, the diversity of financing options available in the marketplace-and the number of companies that provide them-has grown as well. This means that there is probably a financing option in the market that will fit your needs. But it also means that most building owners, executives, and other decision-makers don't have time to understand and compare all the available options.
That's is why were here to help you learn about the options, decide which might be a good fit, and begin connecting with financing providers within a few minutes.


COMPETING BUDGET PRIORITIES-Many companies have a range of competing priorities that all seek funding from operating and capital budgets.

BALANCE SHEET CONCERNS-Companies may be hesitant to add liabilities onto their balance sheet, particularly if they already have a heavy debt load.

HIGH HURDLE RATES-Companies may require a high minimum rate of return on certain investments (including energy improvements) because they could also deploy the capital into other high-return investments.

LEASED SPACE SPLIT INCENTIVES-In leased spaces, building owners may not be inclined to pursue energy efficiency measures if the resulting savings accrue to tenants, and vice versa.

LIMITED STAFF BANDWIDTH-Limited staff capacity and/or lack of financial or technical expertise in energy efficiency and renewable energy may prevent companies (especially those smaller in size) from exploring potential projects.

HIGH TRANSACTION COSTS FOR SMALLER PROJECTS-Small commercial projects (below ~$250K) may have high transaction costs relative to the value of the project, and they may have difficulty accessing financing.

FINANCING TERM MISALIGNMENT-Property ownership periods or tenant lease terms may be shorter in length than the financing term.