Project Financing for Commercial Building Energy

Project Financing for Energy Efficiency

At Associated Renewable we help our clients obtain project financing for their energy projects through our lender network for projects that might otherwise be too expensive to be completed. Project financing is a critical step and has emerged as a leading way to finance large scale infrastructure, industrial, and natural resource based projects.

According to the National Renewable Energy Laboratory, Project Finance is asset-based financing, meaning that the project lenders have recourse only to the underlying assets of a project. It involves both debt and equity, where the debt-to-equity ratio is typically large (e.g., 70% debt to 30% equity). Debt is used when available and when it is the least expensive form of financing, with equity still needed for credit worthiness. Most important, revenue from the project must be able to generate a return to the equity investors, and pay for interest and principal on the debt, transaction costs associated with developing and structuring the project, and operations and maintenance costs.  The rising global demand for clean energy sources will require substantial capital investments, and project financing will play an essential role.

Our Role

Associated Renewable’s Project Financing services provide our clients and customers with additional financial support to finance energy efficiency measures recommended by our team for compliance with Local Law 87.  Associated Renewable offers the most sustainable and cost-effective solutions for its clients that are examining alternative energy sources in highly fluid energy efficiency and renewable energy markets, while locating and raising the capital required to embrace innovative technologies.