Energize NY Finance Training for NYSERDA Outreach Contractors Aug 2014

Intro to Energize NY Finance

Existing facilities program (EFP)Outreach coordinators webinarAugust 13, 2014

Joe del sindaco, Robert fischman & elyssa rothe

The “EIC”Energy Improvement Corporation

NYS Not-for-Profit, Local Development Corporation (LDC) – A Public Benefit Corporation

Mission: Increase demand for Energy Efficiency & Renewable Energy upgrades

Seed money provided by NYSERDA and DOE

Currently funded by NYSERDA EFP & revenue from financings

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EIC ProgramsEIC operates four programs

Energize NY Residential

Solarize Westchester

Energize NY Commercial

Energize NY Finance


Energize NYA Brief Video


“Municipalities would fulfill an important public purpose by providing financing to property owners for the installation of renewable energy systems & energy efficiency measures.”

- Article 5L of the NYS General Municipal Law Unique Property Assessed Clean Energy (PACE) structure

Local law enables PACE Repayments collected by

municipality via property tax bill charge

Senior lien status

PACE FinanceProperty Assessed Clean Energy


Energize NY Finance is NY State’s PACE program

Energize NY is ready to finance your clean energy project

Connecticut – Clean Energy Finance and Investment Authority’s (CEFIA) C-PACE has financed over $30 million in clean energy projects since early 2013

California - Sonoma County Energy Independence Program (SCEIP) has financed over $65 million in clean energy projects since 2011

PACE FinanceProperty Assessed Clean Energy


Across the USA, 31 States and the District of Columbia have enacted PACE Legislation

PACE is Nationwide


Bedford Croton-On-Hudson Greenburgh Lewisboro New Rochelle North Salem Ossining

Peekskill Pound Ridge Somers White Plains Yorktown Orange County

EIC MembershipCurrent Members


EIC MembershipProspective Members

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Albany (County) Binghamton (City) Buffalo (City) Dutchess (County) Erie (County) Onondaga (County) Poughkeepsie (City) Putnam (County) Rockland (County)

Rensselaer (County)Saratoga (County)Suffolk (County)Sullivan (County)Syracuse (City)Troy (City)Ulster (County)Westchester (remaining munis)NYPA Five Cities Program

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What is Energize NY Finance?

New way to pay for clean energy projects in commercially-owned buildings: Healthcare Hospitality Industrial Multifamily Warehouse Private colleges

Not-for-profit Office Retail Agricultural Institutional


Robert Fischman

Energize NY FinanceBenefits

Finance up to 100% of project cost

Long terms up to 20 years • Deeper upgrades• Renewables• Positive cash flow

Automatically transfers to next property owner

3.75% - 6.75% interest rate

Local government support

Trusted source messaging

Aligned with community goals to create local benefits• Jobs creation• Keeping dollars local• Better buildings• Reduced emissions

EIC membership tools


Energize NY FinanceUnderwriting CriteriaApproval based on capacity to lower energy cost & carry tax charge

Estimated annual energy cost savings from improvements must be greater than annual finance payments

Improvements have a savings-to-investment (SIR) ratio > 1

Property’s existing loan-to-value ratio is not greater than 80%

Financing up to 10% of value of benefitted property

Market value appraisal (within last 12 months)

No bankruptcy within last 7 years

Minimum 3 year history of timely property tax payments

Existing lender consent required


Energize NY FinanceCase – Parking Garage

Project InformationSize: ECMs:LightingProject Cost:$98,300NYSERDA Incentive:$12,524Annual Dollar Savings:$10,437Annual Electric Savings:104,367 kWhDemand Savings: 12 kWFuel Savings:N/ANYSERDA Incentive:$12,524Simple Payback:8.2 years

Finance InformationEnergize NY Finance Term: 15 yearsInterest Rate:

5.86%Project Cost:

$98,300NYSERDA Incentive: ($12,524)Financed Amount: $85,776

Annual Financing Cost:$9,627Annual Dollar Savings:$10,437


Energize NY FinanceCase – Warehouse

Warehouse Project InformationSize:150,000sfECMs: Lighting & controls (replace T12 w/super efficient T8)Annual Dollar Savings: $23,254Project Cost:$84,000NYSERDA Incentive:$28,354Annual Electric Savings:233,548 kWhDemand Savings: 36 kWFuel Savings: N/ASimple Pay Back: 2.4 years

Warehouse Project InformationEnergize NY Finance Term:5 yearsInterest Rate:3.86%Project Cost:$84,000NYSERDA Incentive: ($28,354)Net Financed: $55,645

Annual Financing Cost:$13,768Annual Dollar Savings:$23,255


Energize NY FinanceCase – Office

Project InformationSize:20,000sfECMs: Motors, controls, VSDsProject Cost:$48,373Annual Energy Savings:

$18,967Annual Electric Savings:164,931 kWhDemand Savings: 16 kWFuel Savings:N/ANYSERDA Incentive:$19,792Simple Pay Back: 1.5 years

Finance InformationEnergize NY Finance Term: 5 yearsInterest Rate:3.86%Project Cost:$48,373NYSERDA Incentive:($19,792)Net Financed: $28,581

Annual Financing Cost: $ 7,323Annual Energy Savings:

$18,96704/14/23 Commercial.EnergizeNY.org 17

Energize NY FinanceCase – Private College

Project InformationSize:

1,000,000 sfECMs: Lighting & controlsProject Cost:$4,078,129Annual Energy Savings:$278,430Annual Electric Savings:2,651,715 kWhDemand Savings: 519 kWFuel Savings: N/ANYSERDA Incentive: $318,206Simple Pay Back: 13.5 years

Finance InformationEnergize NY Finance Term:20 yearsInterest Rate:

6.37%Project Cost:$4,078,129Down-payment:($900,000)NYSERDA Incentive:($318,206)Net Financed: $2,859,923

Annual Financing Cost:$275,545Annual Energy Savings:$278,430


Energize NY FinanceCase – Bank

Project InformationSize:

UnknownECMs:

HVAC Project Cost:$183,169NYSERDA Incentive: $8,606Annual Energy Savings:$12,717Annual Electric Savings: 71,715 kWhDemand Savings: 49.5 kWFuel Savings: N/ASimple Pay Back: 13.7 years

Finance InformationEnergize NY Finance Term:20 yearsInterest Rate: 6.28%Project Cost: $183,169NYSERDA Incentive: ($8,606)Down-payment: ($46,000)Net Financed: $128,563

Annual Financing Cost: $12,525Annual Energy Savings: $12,717


Energize NY FinanceCase – Hospital

Project InformationSize: unknownECMs: Lighting, chiller replacement, controlsProject Cost:$4,245,354NYSERDA Incentive:$375,028Annual Energy Savings:$247,673Annual Electric Savings:2,621,235 kWhDemand Savings: 2,260 kWFuel Savings: N/ASimple Pay Back: 15.4 years

Finance InformationEnergize NY Finance Term:20 yearsInterest Rate:6.37%Project Cost:$4,245,354NYSERDA Incentive:($375,028)Down-payment:($1,300,000)Net Financed: $2,570,326

Annual Financing Cost:$247,673Annual Energy Savings:$250,860


Building owner submits online Pre-Application

Submit Application with required documents• NYSERDA approved Scope of Work • Property Credit Documents (Market Value

Appraisal, Mortgage Documents, Organizational Documents)

• Existing Lender Consent Submit Proof of Project Completion Release of Funds $$$

Energize NY FinanceEasy Application


Elyssa Rothe

Energize NY Working with Outreach Contractors

Outreach Contractors are critical to closing the loop on projects. Starting with this webinar, we’re working to integrate

Training on Energize NY Finance Integration into NYSERDA generated

outreach materials Developing an ENY Finance calculator for

project financial analysis


Energize NY Working with NYSERDA

ENY Finance & PACE model supported by NYSERDA & the NYS Green Bank

Long standing relationship with management & staff

Four plus years program experience with HPwES

Leverage that experience, community and municipal connections to drive demand for the commercial programs

Energize NY Working with NYSERDA (con’t)

Working closely with NYSERDA staff to build pipeline• EFP• MPP• Solar

Working closely with NYSERDA service providers• EFP service providers• MPP service providers• Solar providers

Working with NYSERDA program contractors • ROCs• OCs• DEC/Climate Smart Community Coordinators• Sustainable CUNY/NY SolarSmart

Working to coordinate marketing/messaging

Energize NY Finance Resources & Tools

Process & program support

Project referrals

Qualified partners

Web content

Print materials

ENY Commercial team

Pre-application training

Salesforce sharing (in dev)

Case studies (in dev)

Newsletter

Municipal action letter

ENY Finance calculator (in dev)

What additional tools, support, training or materials can we provide that integrate with OC’s existing toolkits?


Energize NY FinanceBenefits for You

Unique structure allows for potentially bigger projects

Allows for more comprehensive projects

Helps to unstick projects that may have become dormant

Helps move us all towards reducing demand on the grid by making more and larger projects possible, sooner


Energize NY Finance Product Summary Uses PACE loan structure

100% financing

Immediate cash flow positive

Financing transfers upon sale

In partnership with NYSERDA programs

Commercially-owned buildings eligible

Any EIC member municipality

Interest rate: 3.75% - 6.75%

Flexible 5-20 year terms


Energize NY Finance

Questions?


Follow upConnect

Finance Preapplication

Newsletter sign up

Facebook

Twitter

Materials

We’ll be sending out:

Powerpoint presentation

New FAQs

Printable flyer

Energize NY Finance Training for NYSERDA Outreach Contractors Aug 2014

Government & Nonprofit

Transcript of Energize NY Finance Training for NYSERDA Outreach Contractors Aug 2014