BEDFORD HILLS, N.Y.--(EON: Enhanced Online News)--Joule Assets Inc., a leading provider of energy efficiency (EE) and demand response (DR) financing, and market analytics, today announced a rich set of financing solutions for EE contractors. Though various financing options have long existed for large-scale EE projects, vendors and their customers looking to initiate small-to-midsized HVAC, controls systems, and lighting projects have faced significant challenges finding financing—until now.
“Joule Assets’ financing solutions move the industry a step further by extending off-balance sheet, insurance-backed financing and flexible repayment options to small and midsize projects (sub-$10M) that have traditionally been locked out of the financing game due to deal complexity and due diligence costs.”
The small-to-midsize EE market is going through a transformation, much like the solar industry in recent years, thanks to financing vehicles with features that mitigate risk and unlock investment capital. Joule Assets Inc., announced that it will accelerate the small-to-midsize EE market by offering Energy Reduction Assets (ERA), financing that includes Energy Reduction Service Agreements (ERSAs) that follow the Energy Services Agreement (ESA) model, and direct loans. Joule’s proprietary market analysis software tools in DR and EE will uncover additional revenue streams and conditional cash flows that are inaccessible to traditional financing entities, thereby unlocking the potential of the small to midsize market. Financing product features may include: no-upfront payment, performance guarantees, performance guarantee insurance and off balance sheet treatment. Joule’s products are also able to leverage flexible collection methods including on-bill repayment (OBR).
“With financing options like Joule’s Energy Reduction Service Agreement, the EE industry is taking a page from the solar playbook to remove barriers, like prohibitive upfront costs, to EE financing,” said Joule Assets CEO, Mike Gordon. “Joule Assets’ financing solutions move the industry a step further by extending off-balance sheet, insurance-backed financing and flexible repayment options to small and midsize projects (sub-$10M) that have traditionally been locked out of the financing game due to deal complexity and due diligence costs.”
Energy Reduction Assets (ERA) Financing
Joule Assets’ ERA financing vehicles mitigate performance and credit risks that have hindered financing for small-to-midsize EE projects under $10M. Joule Assets is offering Energy Reduction Service Agreements, direct loans or leases with options that include:
- No upfront costs to the end-user, resulting in increased deal closure for vendors
- On or off-balance sheet options, giving greater flexibility
- Performance guarantees that can be backed by insurance that ensure projects meet their energy savings projections
- Credit risk mitigation through third party collection methods like OBR
“Small to midsize EE projects represent a substantial portion of the overall EE market; nearly 98% of the U.S.’ 4.8 million commercial buildings are under 100,000 square feet. Joule Assets’ ERA financing solutions can transform these underfinanced projects into bankable assets by bringing measurement, verification and additional DR and EE revenue streams into the investment equation,” said Joule Assets CEO, Mike Gordon.
About Joule Assets
Joule Assets delivers financing solutions backed by performance insurance for energy efficiency (EE) and demand response (DR) initiatives and projects. We create Energy Reduction Assets (ERA) by integrating simple financing and insurance options with untapped revenue streams from our market analysis software tools like ERA-DR. By leveraging our proprietary database, software and extensive industry expertise, our mission is to expand commerce and reduce barriers in these complicated markets by creating transparency and providing financing solutions.