grade entities into cash that can be used for any business purpose.
Monetization Financing: Energy Savings Contracts
We are an active participant in the Energy Savings Installation business.
We work closely with energy savings companies to structure unique proposals for corporate or government entities that will be the end user and
beneficiary of an energy savings installation.
Our funding strategies ensure that payments made by the investment-grade rated beneficiary of the energy savings are always less than the projected energy savings and that payment occurs after the projected energy savings are realized.
Our flexible repayment terms provide energy savings companies with the capital to deploy their systems and profits while offering their customers the installations and resulting savings while deferring the commencement of the payments virtually as long as both parties desire.
This creates a never “out pocket” and infinite rate of return scenario on the investment in the energy savings installation.
Sample Transaction :
Energy savings – whereby $X million of equipment installed will save Plant a minimum in excess of $Y million on their utility cost per year over a useful equipment life of 10 years.
We will fund Energy Installation Company an amount equal to $X million plus profit from us at closing while we take assignment of a 10 year annual payment in arrears of less than $Y million, an amount which was negotiated between Energy Installation Company and Plant in an operating and maintenance agreement.
This allows the Plant (investment-grade rated Obligor) to upgrade their facilities today and begin realizing the savings with no out of pocket nor any diversion of allocated capital budget dollars and receive an “infinite rate of return” on their investment as the energy savings will always be greater than the annual payment.
Example: Municipal Building Retrofit of Energy Savings Equipment
Our funding strategies ensure that payments made by the governmental beneficiary of the energy equipment retrofit, for example, are always less than the projected energy savings and that payment commences and always occurs after projected energy savings are realized.
This allows the governmental entity to upgrade its infrastructure today and begin realizing net energy savings immediately upon installation completion.
This creates a never out of pocket and infinite rate of return scenario on the investment in the energy savings installation.
Where Monetization Financing Works Best:
- Service and Supply Agreements
- License Agreements
- Energy Savings Contracts
- Waste-to-Energy Facilities
- Renewable Energy and other Green Initiatives
- Real Estate and Project Funding for Cities and Counties
- Deferred Compensation
- Real Estate and Infrastructure
- Funding for Government Programs and Projects
- Monetization Financing vs Traditional Funding
- Monetization Financing Benefits
- Monetization Financing FAQ’s
Simply stated we offer the best financing package available to investment grade entities – low interest rates, no equity or board seats, no covenants, no oversight and done in a quick and efficient manner.
Industries Where Monetization Financing is Working:
- Waste Management
- Water Purification
- Green Energy (Power Purchase Agreements)
- Waste-to-Energy Facilities
- Wind Turbines and Solar
- Oil and Gas
- Wastewater Treatment Plants
- Food Processing
- Nearly all industries can be approved!