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REDUCE ENERGY CONSUMPTION.
REDUCE EMISSIONS.
REDUCE COST.
We work with energy efficiency project developers, including ESCOs, and financiers to get commercial, industrial, and multi-family energy efficiency projects funded.
UNDERSTANDING ENERGY EFFICIENCY
Energy efficiency is an impactful but pervasively untapped climate and cost-savings solution. Energy efficiency refers to a variety of materials and equipment that save energy and reduce carbon emissions, often while yielding cost-savings, including, but not limited to: lighting, heating, ventilation, and air conditioning (HVAC), controls, insulation, and EV charging.
OVERCOME PROJECT HURDLES
Mature technologies like heat pumps and LEDs have been available for decades, but businesses often lack the financing solutions to implement projects.
The upfront cost of energy efficiency solutions can be burdensome, whether incorporating energy efficiency solutions into a new-build, or retrofitting existing buildings. Energy solutions providers mitigate this hurdle by offering financing to property owners and customers. However, financing can be expensive or inaccessible to many businesses who do not have investment grade credit ratings.
EneRate Credit Cover® policies enable financing and can unlock more competitive rates for building upgrades or retrofits.
HOW IT WORKS
Financiers provide loans to project SPVs for project development. Once the energy efficiency equipment is installed, the energy service agreement (ESA) Beneficiary makes payments to the project SPV to cover the equipment and services rendered. A portion of these payments is passed on from the SPV to the financier as debt service payments.
If the financier has concerns regarding Beneficiary credit profiles or ability to pay for services over time, they may deny financing or offer a higher cost of capital.
Financiers can gain confidence in debt service repayment when an EneRate Credit Cover® policy is applied. If a Beneficiary defaults on ESA payments and claims criteria are met, EneRate Credit Cover® kicks in and provides payment to the Insured, most often the Financier or the Developer. With this added layer of confidence in debt service, Financiers may elect to finance projects that otherwise would have been denied, and may elect to offer more competitive capital rates and terms.
With EneRate Credit Cover®, financiers and developers with portfolios may elect to decrease their investment grade threshold requirements, allowing them to reach more of the underserved middle market.
MARKETS WE SERVE
Commercial Real Estate (CRE)
We help energy efficiency developers secure competitive financing for efficiency projects with commercial real estate Beneficiaries, including for bankruptcy remote and special purpose entities. We can also help with solar and other clean energy project finance needs.
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C&I, subsidiaries, and franchises
Our product is especially helpful for unrated or below investment grade entities seeking credit enhancement in order to secure project finance.
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MUSH (municipalities, universities, schools, and hospitals)
Often equipped with stable credit ratings, we may help these entities secure a lower cost of capital.
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Multi-family
Energy efficiency upgrades can be a gamechanger for existing apartment and condo buildings, and energy efficiency installations should be a universal investment for new builds. Efficiency solutions benefit landlords and tenants alike.
WHO WE WORK WITH
Energy efficiency project developers and ESCOs
We can help you reach the underserved C&I “middle market”
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Financiers
We help financiers deploy more capital and support underserved markets
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Corporates
If you are looking to fulfill corporate sustainability initiatives, we can connect you with our energy-as-a-service provider and financier networks. Secure the funding you need to cover the upfront costs of equipment and installation. Lower your carbon footprint. Benefit from the long-term cost savings that efficiency solutions can yield.
Required Materials
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Project Proforma in Excel (include actual or estimated debt service payments)
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3 years of Offtaker financials (audited preferred, but CPA-prepared is acceptable)
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Income Statements
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Balance Sheet
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Statement of Cash Flows
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Any CPA or auditor notes
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ESA Agreement
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Include all documents (site lease, easement, and/or license) as they may be separate agreements
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Rent Rolls if multi-tenant commercial or multi-family property
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Detail on any credit enhancements already available to the project
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Corporate guarantee/personal guarantee
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Letters of credit
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ACCELERATE THE UNDERWRITING PROCESS BY:
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Demonstrating that the developer has proper security over the collateral at hand, which may take the form of UCC filings
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Seeking coverage for:
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Sites with single Beneficiaries in the shipping, logistics, and storage (such as cold storage, warehousing, distribution centers); capital goods; consumer non-cyclical; municipalities, and utilities sectors.
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Multi-site portfolios with investment grade Beneficiaries comprising 60% or more of the portfolio
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Including quantification of the financial benefits to the Beneficiary
