Effective and Sustainable Financing Solutions for Ohio
As the world continues to shift towards more sustainable energy use, it’s crucial that Ohio businesses are equipped with the necessary tools to make this transition smoothly, efficiently, and without breaking the budget. There are a variety of financing options available, including Commercial Property Assessed Clean Energy (CPACE), On-Bill Financing, and Energy as a Service (EaaS). These financing solutions not only help reduce carbon footprints but also offer significant cost savings.
CPACE: Empowering Ohio Businesses with Energy Efficiency
CPACE (Commercial Property Assessed Clean Energy) is a financing option available to businesses in Ohio. This program allows commercial property owners to finance energy efficiency and renewable energy upgrades through a voluntary assessment of their property tax bill. One of the key benefits of CPACE is the availability of long-term financing, which provides businesses with the flexibility to spread the costs of their energy efficient upgrades over a longer period. Additionally, CPACE offers competitive interest rates, making it an attractive option for businesses looking to invest in sustainable and energy-efficient solutions.
Another advantage of CPACE is the ability to transfer the assessment to a new owner if the property is sold. This feature ensures that the financial responsibility for the energy efficient upgrades is seamlessly transferred to the new owner, allowing businesses to enjoy the benefits of their investments even if they decide to sell the property in the future.
To be eligible for CPACE, the proposed upgrades must be deemed cost-effective, ensuring that businesses can achieve a positive return on their investment.
Overall, CPACE offers a comprehensive and attractive financing solution for businesses in Ohio, empowering them to embrace energy efficiency and renewable energy upgrades while minimizing the financial burden.
On-Bill Financing: Boost Energy Efficiency
On-bill financing is a beneficial program that allows utility customers to borrow money specifically for energy improvements. This financing solution enables businesses to make necessary upgrades to enhance energy efficiency without incurring significant upfront costs. The payback terms are structured in a way that ensures the energy savings generated from the improvements are equal to or even greater than the loan repayment amount reflected on the utility bill. By repaying the loan through their utility bill, businesses can enjoy the advantages of reduced energy consumption and lower utility bills. Similar to CPACE, the repayment can be spread out over a longer term than traditional lending.
To be eligible for On-Bill Financing, businesses typically need to be existing customers of a public utility (currently not available for municipal or cooperatives).. With On-Bill Financing, businesses can take proactive steps toward sustainability while experiencing long-term cost savings and environmental benefits.
Energy as a Service (EaaS): Streamlining Energy Management
Energy as a Service (EaaS) is an innovative financing model streamlining the way businesses manage their energy consumption. In this model, a service provider offers energy-saving retrofit services to a business in exchange for a contracted fee based on the amount of the energy savings. The service provider is taking on the “service” of energy efficiency by providing and maintaining the new equipment and its daily operations. With a properly structured agreement the capital provider takes on the risk of the energy efficiency project results (savings) and the business gets new equipment. By adopting this approach, businesses can avoid the need for large upfront capital investments in energy efficiency upgrades, making it a cost-effective solution.
EaaS agreements, which are typically long-term contracts, provide businesses with the assurance of guaranteed energy savings. The service provider takes on the responsibility of not only designing and installing energy systems but also operating and maintaining them. This comprehensive package allows businesses to focus on their core operations while enjoying the benefits of optimized energy usage and reduced costs.
With EaaS, businesses can take a proactive approach towards sustainability and environmental stewardship. By partnering with a reliable service provider, they can unlock the full potential of energy efficiency, contributing to a more sustainable future while maximizing their operational performance and financial savings. While making these outcomes possible, financial risk is limited.
In conclusion, if you’re looking for creative financing solutions to support your energy improvements while avoiding the need for upfront cash payments, these strategies are worth considering. By exploring these options and understanding their benefits and eligibility requirements, Ohio businesses can make informed decisions that align with their needs and goals. Invest in energy efficiency and renewable energy to drive positive cash flow and contribute to a sustainable future.