How Are Projects Financed?
There are a number of ways to finance energy conservation projects: Utility incentive programs, which are growing in scope and benefit Internal operating or capital budgets Local banking relationships Lease finance companies (e.g., Bank of America, Siemens Financial) Local Industrial Development Authority, or similar public authorities Tax incentive programs Federal stimulus package (NYS will gain at least $126 million for energy efficiency and renewable projects; the spending process is yet to be determined.) Most projects use a combination of 2-3 financing sources to maximize the impact of the program and reduce the final cost to the customer. For instance, utility incentives to cover 25% of the cost, a low-cost energy lease to finance the balance, and tax credits to partially prepay the lease after construction is complete. Regardless of the mechanism, LIEP is knowledgeable in all aspects of the process and works with its customers to craft a custom financing program. An important p
