|
SDGE On-Bill Financing (San Diego County only)
San Diego Gas and Electric has initiated a loan program for commercial building owners to finance energy efficiency upgrades (including solar) through payment of their monthly utilities bill. The Loan limit is $100k and the loan terms range from 5-10 years with an interest rate of 0%.
View Tech Residential Financing
View Tech, a privately held company based in San Diego offers a low interest, unsecured financing program for residential energy efficiency upgrades (including solar). Loan maximum is $20,000 and the term is 10 years. To be eligible, customers must have a credit score of > 640 and be able to prove through financial statements that they are capable of making the payment.
Power Purchase Agreement - PPA
A PPA is a energy lease program in which Solar Panels are owned by a third party and power is sold under contract at fixed rate to the building owner. Excess energy produced can be sold at retail values or discounted retail values to utility companies in regions with Feed-in Tariff legislation.
HELOC
Conventional home equity or commercial equity line. Owner must apply for line with financial institution and line limit is based on equity in the property. Standard interest rates apply and range from 5-15% depending on the customer's credit score and net worth. Loan is secured by property equity and/or personal assets. Line term ranges from 15-30 years
Bank Line of Credit
Conventional bank line of credit in which the line is secured by property equity, company and/or personal assets. Owner must apply for line with financial institution and line limit is based on the value of collateral. Standard interest rates apply and range from 5-15% depending on the customers credit score and net worth. Loan term ranges from 5-30 years
Conventional Bank Loan/Refinance
Conventional loan in which the loan is secured by property equity, company and/or personal assets. Owner must apply for loan with financial institution and loan value is based on the value of collateral. Standard interest rates apply and range from 5-15% depending on the customer's credit score and net worth. Loan term ranges from 5-30 years
Private Equity
Projects can be financed through a private equity fund that offers a loan at a fixed rate. Can be in the form of a conventional loan, re-finance, equipment lease or PPA.
Equipment Leasing
A third party company (leasing company, private equity or bank) purchases equipment and leases to the building owner with a fixed monthly payment over a given term. The equipment lease can be in the form or a non-tax lease or a standard tax lease:
Tax Lease
In a Tax Lease agreement, the financing company leases the equipment to the building owner over a given term (usually 7-15 years) and the equipment is used as collateral. At the end of the term, the building owner has a buyout option to purchase the equipment either at a percentage of the original price or at fair market value.
AB 811/SB 279 - Municipal Funding
Assembly Bill 811, signed by Governor Schwarzenegger in 2008, allows all California cities and counties to offer low-interest loans for energy efficiency projects and solar panels to homeowners and small businesses. Home- and business owners would pay back the loans through assessments on property tax bills. If the property is sold, any outstanding loan balance is taken over by the new owner. Many local governments are considering using AB 811 or AB 811-like programs to offer energy-efficiency and solar loans to their residents. There is much interest from local cities and counties how they can tap into ARRA funding for these programs.
Edison-Wright
A private corporation that works with local governments to establish funding programs enabling building or home owners to borrow money for energy efficiency improvements to their property with a low interest rate tied to property tax payments. Empowered Energy Solutions has developed a relationship with Edison-Wright to facilitate project finance in regions in which Edison-Wright is active.
|
