Innovating to Secure America's Energy Future
Financing
Our solutions are designed to pay for themselves from the energy-related savings they will produce. This allows you to get the benefit of energy-related upgrades and infrastructure renewal without spending money out of pocket. In addition to identifying, designing, and implementing your energy projects, we guarantee the savings. This guarantee allows us to arrange off-balance sheet financing that will be repaid using the guaranteed savings that the project will generate. If we were to fail to deliver on our guarantee, the lenders would look to us rather than to you to make up the shortfall. The result for you is improved energy security, increased sustainability, and reduced operating expenses that do not need to come out of your budget.
Here is how it works:
If project financing is not structured carefully, financing costs can derail an otherwise attractive project. We work to minimize the total cost to our clients within project objectives and utilize multiple financing sources to ensure the most competitive rates possible. We identify any available incentives from state or local governments, utilities, or the federal government that can be used to offset project costs, and we structure the transactions to leverage these incentives.
The Department of Energy awarded Clark a $5 billion Super ESPC contract that allows us to contract with any federal agency for energy-related projects. In addition to allowing us to pay for your project using the future guaranteed utility savings — so that it doesn’t hit your budget — the new Super ESPC contract allows us to accomplish a wide range of objectives:
- Structure transactions to minimize financing costs
- Leverage your ARRA appropriations by combining it with ESPC finance
- Upgrade new construction projects to include more efficient systems
- Start planned future construction projects to replace inefficient existing facilities earlier
- Finance renewable energy projects without losing the tax benefits
Though the Super ESPC contract is restricted to federal facilities, an energy savings performance contract structure can be utilized for projects outside of the federal government. In addition, for projects for which an ESPC is not the most appropriate contracting vehicle, we are also comfortable using enhanced use leases, equipment leases, energy services contracts, bond financing, tax credit financing, and power purchase agreements.
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