Financing options can be specifically tailored to the individual requirements of each project regardless of project size, cost or complexity.
Power Purchase Agreement (PPA)
Martin Energy Group can offer to fund either all of, or any proportion thereof, the costs associated with the implementation of the CHP project. This includes the design, supply, delivery, installation, commissioning and on-going operation of the system. Martin Energy Group would recover both the initial capital costs and the ongoing maintenance charges over a contractually agreed period, usually 10 years, by charging a Cents/kWh rate for the electricity generated by the CHP plant. 5/10/15/20 year terms are available.
PPA benefits include:
- No capital outlay/lower risk
- No ongoing maintenance costs
- Faster implementation/immediate savings
- Long term, capped energy costs
- Energy Services Contract.
Martin Energy Group can provide a fixed cost for the complete turnkey package, including project design, supply, delivery, installation and commissioning. In addition to this, a service package can be offered that will operate and maintain the system throughout its lifetime. The main advantages of the capital purchase route are that the greater savings will be achievable over the product lifetime and greater operational flexibility is available. If the capital purchase option is being considered and the customer is making a taxable profit (paid to IRS), the project will likely be eligible for Investment Tax Credits. This mechanism allows companies to take advantage of energy investments through a 10% ITC and a five year MACRS (accelerated depreciation of asset).
Capital Purchase benefits include:
- Customers receive the full financial benefit of the energy savings
- The equipment is owned by the customer
- Run profile can be more easily modified to suit customer needs
- Energy credits available
Energy Savings Agreements (ESA)
This process should start with a detailed energy feasibility study looking into the following aspects:
- Demand Side Measures (also known as Energy Conservation Measures) – These center on opportunities that reduce the energy demand on site, e.g. new lighting, pumps, pipework insulation etc.
- Plant Upgrades – These opportunities look at generating the same energy demand but by using less fuel, e.g. new boilers, chillers etc.
- CHP – Once the new site demand and plant has been considered a CHP opportunity be evaluated.
Following the audit, a comprehensive report and savings calculation is presented to the customer. 5/10/15/20 yr terms available. An agreed fixed monthly fee is paid by the customer to Martin Energy Group, and this fee is actually covered via the savings generated from the introduction of the upgraded equipment. As a result, the net cost to the customer is typically zero.
ESA benefits include:
- Guaranteed savings and levels of service delivery
- Zero capital outlay
- Proven method to reduce a site’s energy consumption
- Carbon credit systems/alternative energy credits