Our Private Retrofit Fund Provides Capital with Zero Up-front Costs to Improve Buildings
Associated Renewable operates a retrofit fund that invests in energy reduction assets. Energy reduction assets involve energy efficiency projects implemented to reduce energy consumption, eliminate waste and reduce overall energy costs. Energy efficiency projects provide immediate and long-term revenue streams for investors. The projects themselves benefit building owners by reducing operational costs, improving tenant comfort levels, increasing occupancy rates, and providing a valuable fiscal boost to property value.
Off- Balance Sheet Funding Available through Energy Services Agreements (ESAs)
Since high capital costs are considered to be the one of the main barriers in funding energy projects, we eliminate that burden for building owners. Through a novel funding mechanism known as the energy services agreement (ESA), we offer building owners and managers funding for energy retrofit projects with no up-front capital requirements. Essentially, Associated Renewable's private fund pays for the energy retrofit project, and the actual energy savings realized are used toward paying for the new equipment. Building owners and tenants will still pay the same or slightly lower in utility costs compared to their historical level. Since actual energy savings pay for the project’s cost, it appears as an operating expense for the building and is completely off-balance sheet. A unique benefit to the building owner includes new equipment obtained at no up-front costs.
Attractive Returns for Investors
For investors, energy efficiency projects offer long-term revenue streams that can be leveraged as assets. Energy savings realized from retrofit projects provide low- to no-risk cash flows that can provide substantial returns to institutional and individual investors. Performance guarantees are generally provided on the projects, which ensure that savings occur as forecasted to justify the investment.
To learn more about Associated Renewable's private retrofit fund or for investment opportunities, contact the Investor Relations team at (212) 203-4443.