Financing
There has never been a better time to implement energy and carbon reduction solutions. The federal government and many states, cities, municipalities, and electric and gas utilities offer attractive financial incentives (grants, tax incentives, rebates, etc.) for renewable and energy efficiency investments. Learn more about the incentive programs that might be available in your state.
Obtaining Financial Incentives
During the planning phase, we will project the financial costs and benefits of your investment in energy and carbon reduction solutions, including all the incentive programs currently available to you. If you decide to proceed with the investment, we will prepare the necessary applications for financial assistance and keep you abreast of their status as they move along the review process. Nexamp can then install your project under a turnkey fixed-price contract.
Power Purchase Agreement Project Financing
We can also provide the capital required for certain types of renewable power generating facilities. In this case, Nexamp builds, owns, and operates the generating facility (for instance, a solar photovoltaic array) and sells the electricity it produces to the client. The terms and conditions of this arrangement are reflected in a Power Purchase Agreement (“PPA”). Under our standard PPA, the customer leases the roof or grounds for the generating facility to Nexamp at no cost and enters into a 10- to 25-year agreement to buy the electrical output from the facility for a monthly payment based on an agreed-upon price per kWh. The customer also has the right to purchase the facility at a fraction of its original cost at various points throughout the term of the agreement.
The main advantage of PPA financing is that the customer has no capital outlay, but can still hedge its costs against future electric utility increases and benefit from the goodwill associated with renewable power. Moreover, all maintenance costs and operating risks are shifted to Nexamp. To qualify for PPA financing, the customer must have an investment-grade credit rating.
Energy Services Agreement Project Financing
We also offer customized energy efficiency financing solutions. These solutions can enable customers to use the cash savings from an energy efficiency retrofit project to finance the investment without any up-front capital cost.
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