BRIDGING THE GAP
Funding resource efficiency and energy solutions
Carbon Metrics have identified a significant disconnect between the needs of Energy Service Companies’ customers and institutional funding models. Traditional capital has always sought scale in the projects they invest in which has caused a vacuum at the lower CAPEX end of the market. Energy Service Companies’ customers face having to invest their own funds or resort to traditional bank debt.
Carbon Metrics has developed an approach which enables the right type of finance to flow into projects in a previously unattainable structure.
Corporates – the End Users – get the right type of money for the projects their trusted advisors have prescribed for them and for which there is a compelling business case.
Energy Service Companies get to unblock their sales pipelines.
Funders gain access to a fast-growing part of the market previously out of reach to them.
Carbon Metrics is Bridging the Gap.
Funded Resource Efficiency and Energy Solutions
Carbon Metrics finds the right funding which, along with the prescribed technologies, delivers a comprehensive, integrated solution for resource efficiency and energy-based investment in business infrastructure.
The Funder writes the cheque for the installation, not the end-user.
This is a genuine ‘No-Money-Down’ arrangement, available to Energy Service Company customers subject to positive credit report.
The Customer enters into an Energy Performance Contract with the Funder, typically for 5-10 years, depending on technology mix and payback. Under this contract, the identified savings over the full period are shared between Customer and Funder.
The Customer’s share is cash flow positive from day 1 and flows straight to their bottom line.
The Funder’s share covers
- the upfront purchase, installation & commissioning of the Equipment and set-up fees
- the contracts for equipment maintenance over the full contract period
- the contract for Monitoring & Verification of the projected savings to demonstrate delivery on the original promise over the full contract period
- if required, insurance cover for delivery of the projected savings
- all the Funder’s return on the investment made in the business infrastructure.
At the end of the contract period, the equipment is for the Customer to keep. Asset life will always be longer than the term of the Energy Performance Contract.
With this approach, the Customer
- puts no money upfront,
- other than Contracted Service Charge, no additional Opex
- the monthly Contracted Service Charge under the Energy Performance Contract comes out of the delivered savings in Utility Bills – electricity, gas, water.
- Not only is there no upfront outlay, but there is in fact positive cash flow from day 1 for the Customer- the Funder waits for cash flow break-even until typically year 5 or 6 in a 10 year contract.
New technologies are always emerging. The economics for existing technologies are always improving. This means Energy Service Companies will be bringing the business case for additional layers of investment in business infrastructure to their Customers.
With the Carbon Metrics approach, additional layers of technology/equipment deployment are matched by additional layers of funding. This is efficiently handled by expanding the original Energy Performance Contract.
So, successive investments in resource efficiency, funded through Carbon Metrics, deliver enhanced and immediate positive cash flow from the savings generated.
Pre-approved to proceed with confidence
We structure investments in commercially proven technologies with warranties or performance guarantees to underpin the best possible outcomes for
- HVAC, CHP, BMS
- Air/Ground Heat pumps
- Water treatment and pumping
- Biomass, Biogas, Control / Optimisation Systems & Processes
- Wind Turbines, Rooftop SolarPV and Solar Thermal
- Battery Storage
We work closely with established Energy Service Companies and Consutlancies whose professional staff operate to established international standards with appropriate professional accreditation such as IPMVP and CMVP.