Financing Options
Innovative financing solutions to move your project forward.
PACE
Property Assessed Clean Energy (PACE) financing has become the fastest-growing loan category in the country. Through PACE, property owners save money on energy improvements with 100% off-balance sheet financing, paid for over the long term. Improvements are attached to the property through a voluntary special assessment and collected along with property taxes.
Key advantages:
Financing terms up to 30 years.
Low fixed interest rates.
Transferable.
Off balance sheet.
Can be prorated to triple net tenants.
NICCE
New Inter-Creditor Clean Energy (NICCE) uses a special-priority mortgage to secure improvement financing for clean energy retrofits and new construction.
NICCE is a product of Possible Planet, a 501(c)(3) nonprofit organization, based in Princeton, NJ. (www.possibleplanet.org).
Key advantages:
Available where PACE has not been approved.
No government involvement.
Financing terms up to 30 years.
Low fixed interest rates.
Transferable.
Designed to be able to transition to PACE
Capital Leases
Through our financial partners, AgraCogen can offer commercial leasing to take advantage of immediate opportunities. Unlike traditional loans, lease financing can be completed within a week. Leasing provides the ability to take advantage of tax deductions, and it does not require the borrower to use the property as collateral.
Power Purchase Agreements
Power Purchase Agreements (or PPAs) allow the property owner to receive the benefits of onsite power generation equipment (such as solar or CHP) without actually owning the equipment. The property owner agrees to pay a discounted rate for the electricity generated by the system for a fixed term. No upfront capital is required and the property is not used as collateral.
Options for Nonprofits
For nonprofits seeking the financial and environmental benefits of solar, it's a challenge to utilize tax-based incentives. Power Purchase Agreements and operating leases are two financing options that can be used to address this issue.
In an operating lease, the leasing company benefits from the ITC and the depreciation expense. The nonprofit receives a lower interest rate in exchange.