Financial Analysis
Each Agency’s needs and projects are unique. GAC can help you identify what financing products are available to fund your projects and analyze the best solution that fits your needs.
To accurately analyze the financing options available to your agency, we use information received from an energy audit (some Agencies may qualify to receive a free audit from The Energy Network) and information from you such as available cash, ability to borrow, project timing and the utility incentives available for your project. This information is entered into our calculator to help us determine the optimal way to finance the project.
Often times, it is more advantageous to bundle energy projects to spread the financing costs and to realize greater energy savings from the measures implemented. The Energy Network’s financial analysis considers this and looks at the optimal way to bundle projects to get the most out of your budget.
After our financial analysis is complete, you will receive a Financing Plan that will outline our conclusions and assumptions. The Financing Plan will contain a variety of financial metrics to determine the project’s effectiveness - including simple payback, return on investment, internal rate of return, net present value, and the savings to investment ratio – and to allow you to better determine how you want to proceed.
If you decide to proceed with your project, The Energy Network will assist you in gathering necessary documents and submitting the applications for financing and/or incentives.
Energy Project Lease Financing
Energy Project Lease Financing, a program addresses many of the common challenges public agencies face when financing energy projects. The program offers low interest rates, and a simple application process to quickly get funding from private lenders. Financing is not contingent on whether the project qualifies for utility rebates and incentives, and can be combined with utility or public financing.
Energy Project Lease Financing offers several benefits:
- No up-front capital required (non applicable for certain countries)
- No maximum borrowing limit
- Competitive interest rates
- Terms of up to 20 years, allowing projects to be cash flow positive
- Simple, quick process with little paperwork
- No cross collateralization to decrease risks
- Unlimited funding available through private lenders
Financing Terms |
Type of Project |
All EnergyProjects |
Type of loan |
Lease secured by real property |
Interest Rates |
Market rate (currently between 5-12%) |
Lease Term |
15 years maximum for energy efficiency, 20 years maximum for solar. |
Financing Amount |
Minimum = $10 million; No maximum. |
*For additional lease terms, please see The Energy Project Lease Financing’s bidder requirement term sheet.
Eligibility Requirements
Agency Eligibility
• Financing is available to governments cities, counties, electric districts and public agencies
• The governing board of the applicant must authorize the borrowing of funds via an authorizing resolution.
• Agency must submit a completed application with project data, basic financial information and estimated energy savings.
• Agency must submit the last three years of audited financials, most recent interim financial statement and current budget demonstrating the capacity to make lease payments.
• Agency must have a verifiable credit standing
Project Eligibility
• Conventional Energy and renewable energy projects
• Projects that produce operational or maintenance savings.
• Soft costs and projects that do not exhibit direct savings such as energy management systems or street light conversions (from series to parallel) may be financed.
• Loans are structured as equipment leases secured by the new equipment and upgrades installed during the project or by using real property such as a building. Improvements made to facilities with existing encumbrances may require an alternate security pledge.
• Multiple projects for a single agency may be aggregated into one lease.
Process
Financing your energy project using Energy Project Lease Financing is a quick and easy process.
1. Fill out an application and provide a few items of supporting documentation, such as your current year budget and energy audit.
2. The Energy Network sends your application to our broker who will ask for competitive bids from a large list of qualified financial institutions.
3. Within 5 days, The Energy Network will receive the bids, choose the best one for you and give you a formal Offer to Finance that outlines the interest rate, duration of the loan and lease terms.
4. If you’re happy with the Offer to Finance, The Energy Network will go with you to get Board or Council approval for the financing.
5. Within 5 days of Council approval, Energy Project Lease Financing will close and the funds will be available to you to begin your project.
Get Started
Fill out your Application today and The Energy Network’s financing team will be in touch to help you secure funding and get started on your project.
For step-by-step instructions, please download our Financing Application Packet.
Other Financing Products
When it comes to implementing energy projects and finding the financial resources to fund them, we all have different needs. Just as there are many different financing needs out there, there are also many different types of financing available to fill those needs. Not every type of financing is right for each agency or each situation.
Often times, it is advantageous to combine funding sources in order to finance an energy project. GAC has created a financing decision tree and side-by-side comparison table that discusses the benefits of the three most frequently requested types of financing.
Besides Energy Project Lease Financing, other popular types of funding include: