Change CountryBuilding Efficiency Fund Renewable Projects
Fund Renewable Projects
There are several ways to fund renewable projects:
- Performance Contracting
- Incentives and Grants
- Structured Finance
- Capital Budget
- Monetizing the Green Attributes of a Project
Energy Performance Contracting
The concept behind performance contracting is simple: Perform projects that allow you to save money through reduced energy use and lower facility operating costs. Then leverage the savings to pay for the improvements, including renewable energy components. In the case of renewable energy, customers save money through the use of renewable fuels, and Johnson Controls guarantees the savings and assumes the burden of performance. The result is a cleaner source of energy, reduced emissions, less cost volatility, greater energy independence, all while you operate with cost predictability.Incentives and Grants
Johnson Controls has a proven track record of securing additional funds for our partners, primarily by securing feasibility study and construction grants. The Climate Trust is one such avenue. The Climate Trust is a leading non-profit organization dedicated to providing solutions to stabilize the rapidly changing climate. The sole mission of The Climate Trust is to promote climate change solutions by providing high quality greenhouse gas offset projects and advancing sound offset policy. Johnson Controls has a documented history of working with this organization, for example in a case study outlining our project with the City of Duluth which is available on the Climate Trust website. In addition to the Climate Trust, a wide range of additional funding sources are available. Federal, State, utility incentives, tax credits, and foundation grants are options worth investigating. For more information about state-specific funding options, please visit http://www.dsireusa.org/.Structured Finance
In the case of structured finance funding, energy efficiency assets (boilers, chillers, renewable energy systems, etc.) are legally owned by an entity separate and apart from the owners of the facilities on which the systems are installed. An example of this type of funding is in the solar PV arena. A separate entity owns the assets and sells power to the customer under a long-term Power Purchase Agreement (PPA). Structured financing allows the customer cost predictability and a shift of the responsibility for maintenance of the assets to the legal owner. The asset owner gains the tax credit, if any, associated with the assets and is responsible for system performance.Capital Budget
Customers can choose to use their capital budget to fund renewable projects. We recommend researching state specific tax credits and incentives at http://www.dsireusa.org.Monetizing Green Attributes
Energy efficient projects and renewable energy projects may create Energy Efficiency Credits (EEC), Renewable Energy Credits (REC) or Greenhouse Gas (GHG) Credits. These credits represent the claim associated with 1 megawatt-hour of energy efficiency, energy generation or emissions. These credits are created by the owner of a project, unless given up contractually to another party.Did You Know?
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FREE FUNDING WHITE PAPER
Download a PDF file of our white paper on strategies for funding renewable energy projects.
Our Financing white paper explains the most common strategies for funding renewable energy projects. Learn more.
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Our white paper on Renewable Energy and Energy Efficiency explains why it is always best to combine both strategies. Learn More.
