Carbon Metrics finds the right funding which, along with the prescribed technologies, delivers a comprehensive, integrated solution for resource efficiency and energy-based investment. The Funder writes the cheque for the installation, not the end-user, promoter, or developer of the project. This is a genuine ‘No-Money-Down’ arrangement available to suitably approved technologies with a compelling business case.
The project company enters into a contract with the Funder, typically for 5-10 years, depending on technology mix and payback. Under this contract, the identified cash flows over the full period are shared between the project company and the Funder. The project company’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
- if required, the contract for Monitoring & Verification of the projected cash flows to demonstrate delivery on the original promise over the full contract period
- if required, insurance cover for delivery of the projected cash flows
- all the Funder’s return on the investment made in the project.
At the end of the contract period, the equipment is for the project company to keep. Asset life will always be longer than the term of the Contract
With this approach, the project company
- puts no money upfront,
- other than Contracted Service Charge, no additional Opex
- the monthly Contracted Service Charge under the contract comes out of the delivered cash flows.
- Not only is there no upfront outlay, but there is in fact positive cash flow from day 1 for the project company- the Funder waits for cash flow break-even until typically year 5 or 6 in a 10-year contract.
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 Contract.
So, successive investments in resource efficiency, funded through Carbon Metrics, deliver enhanced and immediate positive cash flows.