We offer a wide range of financing options for qualified customers implementing larger energy efficiency projects. We work closely with our clients to customize a financing structure that best suits their requirements.
Prior to the deployment of an energy efficiency project, our experts evaluate the historical energy use and the existing facility conditions in order to identify the optimal solutions to efficiently generate or conserve energy. We develop a detailed proposal with suggested improvements along with a bankable ROI analysis that enables our customers to decide the best path forward. Appropriate energy efficiency retrofits always stand on their own merit and the majority of our clients purchase the systems directly.
Our mission is to
- Identify worthwhile projects,
- Enable customers to take advantage of immediate opportunities,
- Capture local, state, federal and other financial incentives while they last
- Provide flexible financing solutions that often result in zero cash up front and immediate savings.
Ideal for customers who want to own the equipment but prefer an equipment lease structure over a bank term loan. In addition to traditional bank partners, RentCo also works with a number of specialized energy equipment leasing companies. Terms vary depending on the project, but typical durations are 1- 10 year lease terms.
Equipment purchased via capital lease is owned by the client resulting in an asset on their balance sheet coupled with a long term obligation. Incentives such as tax credits and other accrue directly to the customer. Suitable projects for capital leases include LED lighting, Combined Heat & Power (CHP) and Solar Energy projects.
An operating lease is an “off-balance sheet” mechanism whereby the equipment is owned by the financing party and not the customer. Unlike a capital lease, the operating lease payments are reflected as an operating expense on the P&L and do not show up on the customer’s balance sheet.
Ownership of the equipment, as well as the associated incentives is retained by the financing party until the lease is bought out during, or at the end of the term. Lease payments, terms and residual values will vary by the project and the credit of the customer. Suitable projects for operating leases include Combined Heat & Power (CHP) and Solar energy projects
Energy Savings Contract (ESCO Agreements)
Similar to operating leases structures, Energy Savings Contracts are also off-balance sheet financing strategies that enable customers to avoid the up-front cost of energy efficiency projects and the associated debt obligation on their balance sheet.
ESCO agreements take into consideration the energy savings associated with a project and establish a sharing arrangement between the financing partner and the Client. For example, a project expected to generate 30% in savings may entail a split whereby the customer retains 10-15% of those savings for a period of time while the cost of the project is amortized.
Unlike an operating lease which has fixed payments based on the capital expended, ESCO payments are established by evaluating the savings from the energy efficiency measures and tying the payment obligations to those savings.
Power Purchase Agreements (PPAs)
PPA’s are most commonly used with energy generation projects such as Solar PV, Solar Thermal or CHP projects whereby by the customer pays a fixed rate per energy unit (kWh or Therms).
Ownership of the system and incentives are typically retained by the financing party as part of the package which simplifies the customer’s obligation – to pay only for the energy that is generated.