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EPS has access to virtually every sources of project financing and will make them available to its customers. Because EPS customers have diverse capital circumstances, EPS does not require a customer to use its sources. This is consistent with our "unbundled" service philosophy, an approach in which EPS has been an industry pioneer. EPS consults with each customer to determine which approach best meets the Institution's needs. For BOOT ownership projects, EPS brings equity investment along with debt to the project, consistent with energy "sales" projects.
EPS can offer its customers a variety of financing methods. Non-profit institutions in the U.S. often elect tax-exempt financing, which results in lower interest costs and thereby permits the financing of more ECRMs from savings.
While EPS typically provides or arranges financing, some customers elect to obtain their own. EPS' guarantee of energy dollar savings has enabled these customers to negotiate lower interest rates because cash flow for debt service is assured.
Energy/Environmental Grant Funding
EPS has identified a number of national and international grant sources available. In addition, a number of EPS' customers have access to grant funds provided by various governmental agencies for energy and environmental projects. These funds typically require a demonstration of energy or environmental benefit, which is easy for EPS to accommodate by utilizing its standard measurement and verification protocol to measure the savings in its performance based energy savings projects. EPS has successfully combined performance contracting with funding from grant programs to effectively buy down the cost of its projects. EPS understands the procedures and regulations required to access these funds and is therefore, in many cases, able to provide additional project funding for its customers to help improve the economic benefits.
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