At OEO, we understand that an energy-reduction plan is only as good as its ability to attract and secure funding. Consequently, we place as much importance on seeking and securing funding solutions as we do seeking out new products and technologies.
We have financial consultants that continually seek new sources of competitively-priced capital and have the most up-to-date information regarding rebates, grants and institutional sources of funding.
To help fund projects that pay for themselves with the savings they generate, we have access to and utilize the following sources of funding:
Energy Savings
The energy savings that an energy-reduction project can be used to completely or partially offset lease or interest payments.
Utility Rebates
Most electric utility companies offer rebates to help pay for the cost of energy-reduction projects. In reality, it is the utility’s customers that pay for the rebates by way of an added surcharge that funds the rebate programs. Utility companies offer these rebates because the demand for electricity is approaching their ability to generate it and funding energy-reduction projects is far less expensive and time-consuming than building new power plants.
Rebates can be substantial and can cover as much as 75% of the cost of project, but wading through the rebate qualification and application requirements can be a time-consuming task. As part of our energy-reduction plan, our financial consultants find, pre-qualify and process rebate applications.
Energy Grants
Larger energy users sometimes qualify for government or other institutional grants. We have specialists that have experience in finding and securing grants on specific projects.
Bank Financing
Some banks have special lending programs with low interest rates for energy reduction projects. Our financial consultants have relationships with and maintain a list of these banks and can arrange financing where applicable.
Leasing Programs
We have relationships with several financial and leasing companies that offer a variety of leasing programs capable of meeting the specific needs of most energy-reduction projects.
Third-Party-Pay
With third-party-pay financing, a third party provides project funding in exchange for a string of payments equal to a specified percentage of the savings the project generates over a specified period of time.
EPAct 2009 Tax Deduction
In August 2005, the US Congress passed and the President signed into law House Bill 1331-6 which allows commercial building owners within the United States to take federal tax deductions of up to
$1.80 per square foot for energy-reduction systems installed and implemented into those buildings. The act was set to expire on January 1, 2009, but was extended through December31, 2013. Read more…
Cost Segregation Studies
Cost segregation is a cash flow improvement strategy that accelerates depreciation deductions to reduce or eliminate Federal and State income taxes. Although not commonly understood or used, cost segregation can be a valuable tax strategy for any taxpayer that owns, constructs, renovates or acquires real estate. Read more…
Cost segregation strategies can be used to generate cash flow that are then used to make lease or interest payments.