Financing and Other Resources

Many customers want to achieve energy cost reductions, but lack sufficient funding.   LIEP uses an energy services company (ESCO) model and structures individual turnkey projects such that the energy savings generated pays for the construction cost of the project.  A typical project has a five-year payback and provides positive cash flow to customers in a 10-year financing program.  Many projects have a more rapid return and have shorter financing terms or are paid from capital budgets.

Energy conservation projects can be financed in a number of ways, including utility and tax incentive programs, local banking and lease finance relationships, and internal budgets.  In addition, new projects this year may benefit from the federal stimulus package, which has earmarked $126 million for energy efficiency and renewable projects in New York State.

Most projects use a combination of 2-3 financing sources to maximize the impact of the program and reduce the final cost to the customer.   For instance, utility incentives to cover 25% of the cost, a low-cost energy lease to finance the balance, and tax credits to partially prepay the lease after construction is complete.

Regardless of the mechanism, LIEP is knowledgeable in all aspects of the process and works with its customers to craft a custom financing program.

Other Resources

To learn more about utility and government incentives for energy conservation projects, click on the links below.

• Long Island Power Authority (LIPA)
• National Grid
• New York State Energy Research and Development Authority (NYSERDA)
• Federal Stimulus Package
• Connecticut Clean Energy Fund
• Massachusetts Division of Energy Resources