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External Financing for Energy & Sustainability Projects

​Internal capital can be difficult to access; however, for energy and sustainability professionals in retail, there are a host of external financing mechanisms. Learn about Green Bonds, Tax-Increment Financing, Energy Performance Contracts, Energy Service Agreements, ​Managed Energy Service Agreements, Property Assessed Clean Energy, and On-Bill Financing/Repayment.

External Financing Options

Internal capital can be difficult to access; however, for energy and sustainability professionals in retail, there are a host of external financing mechanisms. Below are the external financing mechanisms that you should consider when funding a project.

Find information about all of the financing options in RILA's External Financing Guide.

Green Bonds

Issued by a retail company and p​rovides a stable channel for investors to provide capital specifically for projects that promote sustainability or mitigate climate change.

Read more about Green Bonds.

Tax-Increment Financing (TIF)

Uses expected future gains in state or municipal property taxes from a development or redevelopment project to finance improvements that will create those gains.

Read more about Tax-Increment Financing.

Energy Performance Contract (EPC)

Executed by Energy Service Companies (ESCOs) who coordinate the installation of new equipment and split the value of energy savings with the customer throughout a contract term. 

Read more about Energy Performance Contract.

Energy Service Agreement (ESA)

Executed by a provider as a pay-for-performance, off-balance sheet financing solution with no upfront capital expenditure.

Read more about Energy Service Agreement.

​Managed Energy Service Agreement (MESA)

Variation of an Energy Service Agreement (ESA) where the provider also assumes the broader energy management of a client's facility, including the responsibility for utility bills, in exchange for a series of payments based on the customer's historic energy use.

Property Assessed Clean Energy (PACE)

​Building owners take on debt for energy efficiency or renewable energy improvements that is repaid through an assessment on their property tax bill.

On-Bill Financing/Repayment (OBR/OBF)

​Utility or lender supplies capital to a utility customer to make energy efficiency improvements and is repaid through regular monthly loan payments on an existing utility bill.

Read more about On-Bill Financing/Repayment.
Last Update: 8/30/2016 8:35:32 AM