Incenergy and Joule Assets announced a new project finance partnership wherein Incenergy will be able to offer in-house financing via Joule Assets to shorten sales cycles of its energy upgrade projects.
Based in Austin, Texas, Incenergy offers energy metering, lighting controls, energy management, HVAC retrofits, and integration services globally for the commercial building market, targeting buildings under the 150,000-sq-foot range. Incenergy’s advanced wireless, cloud-hosted platform helps businesses achieve a 15-30 percent energy reduction.
Under a Master Services Agreement, Joule Assets’ energy reduction asset (ERA) project financing will mitigate performance risks, credit risks, and high transaction costs that have hindered financing for small-to-midsize energy efficiency and demand response projects.
Some of the benefits of Joule’s ERA financing include:
- No upfront costs to the end-user, resulting in increased deal closure for vendors;
- Greater flexibility with on or off-balance sheet options;
- Quick underwriting process; projects can be financed in a week;
- Ability to finance not-credit-rated customers through innovative mitigation tools;
- Additional revenues are shared with customers, which reduces the effective rate by offsetting the interest repayment through demand response and rebates;
- Scalable structure – Joule Assets does the work once and then it scales.
Last year Joule Assets announced its financing scheme to enable more small businesses to obtain capital for energy efficiency projects. Joule Assets works with vendors of energy efficiency services, providing them with funds. They, in turn, loan the money to the end-user businesses.