Level 312 lessons · 106 min
Financing Projects & Energy Performance Contracts
Fund projects off and on balance sheet: EPCs, ESCOs, shared-savings, on-bill finance and green loans.
01Financing Options Overview
- ▶Debt vs Equity FinancingCorporate loans (on-balance); equity investment; blend depending on risk profile.11 min
- ▶Green Bonds, Green Loans & ESG FinancePreferential rates for energy/environmental projects; ESG verification.10 min
- ▶Vendor Financing & Lease-to-OwnEquipment suppliers offer financing; low upfront cost, higher total cost.10 min
- ▶Financing Options CheckQuiz on debt, green finance, and vendor options.5 min
02Energy Performance Contracts (EPC) & ESCOs
- ▶EPC Structure & ESCO ModelESCO funds project; is paid from energy savings; customer takes no capex risk.10 min
- ▶EPC Risks & MitigantsShortfall risk (savings < forecast); guaranteed savings clauses; M&V disputes.10 min
- ▶Shared-Savings ContractsCustomer and ESCO split savings (e.g., 50-50); alignment of interest.10 min
- ▶EPC CheckQuiz on EPC structure and risk management.5 min
03Emerging Finance Models
- ▶On-Bill Financing & Utility ProgramsUtility funds efficiency upgrades; repaid via lower energy bills.10 min
- ▶Venture Capital & Public-Private PartnershipsScaling innovation; government co-investment in transition projects.10 min
- ▶Carbon Finance & CreditsRevenue from carbon savings (via carbon markets or internal pricing).10 min
- ▶Emerging Models CheckQuiz on on-bill, PPP, and carbon finance.5 min