Facility Upgrades: Paid through Energy Savings
All of our Energy Efficiency projects can be funded entirely out of the savings stream; in many cases, with no money out-of-pocket until the project is completed.
And we do take CASH, if you prefer. But most of our customers like to let the savings pay for the project over time.
This means you don't have to tie up your capital for projects that DO NOT have an ROI. For example, if you need a new roof or driveway, you just have to pay for that. Energy savings projects throw off enough savings that you can effectively 'share' some of the savings back to pay off the project cost over time, and still keep some of the savings.
This is Cash-Positive Financing.
In most cases, RPG can take assignment of the Rebate directly from your Utility company. This means that your portion of the project is lower.
Dollar Buy-Out Lease - no money down and Cash-Positive during the term.
$100,000 total turnkey project cost
$30,000 Rebate from Utility - assigned to RPG Energy
$70,000 Net-of-Rebate Due from Customer
Annual Project Savings: $40,000 = $3,333 monthly savings
Monthly lease payment for 36 months = $2,400 payment
PROJECT CASH FLOW = $933 per month or $11,196 annually.
Overall result: No money down, project pays for itself in 36 months. Additonal savings accrue of $33,588 during the first 36 months. After the lease-end, the client enjoys the full $40,000 in annuals savings.
Lumens-as-a Service - Off-Balance-Sheet PLUS includes maintenance*
This is another way to let the savings pay for the upgrade. And this includes maintenance costs for the life of the term, so you have some additional savings there. The biggest benefit of this option is that the program is Off-Balance-Sheet, which is great for companies that have restrictive borrowing covenants with their lenders. This can also provide a boost to Net Operating Income and CashFlow.
*Accounting treatment determined by customer tax and legal guidance.
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