Overcome lender restrictions
Most commercial buildings have existing mortgages that restrict the owner’s ability to take out additional debt for items such as efficiency improvements. Additionally, lenders face uncertainty in energy efficiency deals due to inconsistencies in predicting energy savings.
- Lease financing – Owner leases equipment rather than purchasing to avoid upfront costs
- On bill financing / on bill repayment – The utility or some other third-party source loans money to the owner, and the owner in turn repays that money through a charge on the utility bill
- Green Building Finance Consortium – Offers a free, downloadable book that details how to value and underwrite sustainable properties