Marketing NYCEEC Clean Energy Financing

Transcription

1 Marketing NYCEEC Clean Energy Financing June 2, 2015 Harry Charalambides Willdan Energy Solutions (212)

2 Agenda NYCEEC Program Overview Introduction: Willdan & NYCEEC Loans for Clean Energy Projects Case Studies Demand Generation Next Steps 2

3 Introduction Willdan Energy Solutions National energy efficiency consulting firm Independent contractor to NYCEEC Helps building owners gain access to NYCEEC finance through targeted outreach and customer support New York City Energy Efficiency Corporation (NYCEEC) Provides loans and technical expertise to make NYC buildings cleaner, greener and more affordable Non-profit established in 2011 Funded through federal grants and private philanthropic foundations 3

4 NYCEEC Impact Total project cost: $50.8 million Square footage: 4,282,665 # of units: 3,824 # of buildings: 51 Weighted average interest rate: 6.6% Weighted average term: 8 years BY TOTAL PROJECT COST: By property type By technology By financial product 4 As of May 19, Pipeline subject to change.

5 Loans for Clean Energy Projects NYCEEC provides financing for a broad range of projects, including: Energy Efficiency Clean Fuel Conversion Renewables Cogeneration Demand Response HVAC equipment upgrades Lighting upgrades Building management systems Controls Converting from dirty oil to cleaner alternatives Solar PV Solar thermal Combined heat power (CHP) Fuel cells Demand response enablement Battery storage 5

6 Loan Benefits NYCEEC provides innovative and nimble financing: Up to $6 million for clean energy projects Upfront equipment costs Construction costs Soft costs (energy audits and engineering studies) Technical guidance Clean energy project analysis Engineering quality assurance Performance evaluation Flexible loan structure Interest-only loans Multiple draws Generally no additional requirements above incentive programs 6

7 Potential Borrowers Borrowers can be NYC building owners, vendors & project developers Property types including: Multi-family residential buildings (over 5 units) Commercial and industrial properties Retail businesses and chain stores Hospitals and healthcare facilities Colleges, universities and K-12 schools Non-profit and religious facilities 7

8 Indicative Loan Terms Flexible financing solutions to meet borrowers needs Loan to cost Up to 100% of project costs Loan size Minimum $30,000; maximum $6,000,000 Term 3 to 10 years (Average: 5-7 years) Average Interest Rate 6-7.5% Amortization Fully amortizing loans over term of the loan Deals can be closed as quickly as 2-3 months Financing is subject to final credit approval 8

9 Loan Process 1. Scope Project Contact Willdan Energy Solutions or NYCEEC Submit completed application (or scope, fuel bills, financials) 2. Structure Loan NYCEEC reviews loan package Potential site visit with NYCEEC engineers 3. Finalize Loan Credit review and approval Loan disbursement Construction 9

10 125 Maiden (Manhattan) Loan Details Project Cost NYCEEC Loan Est. Energy Savings Loan products $3.8M $2.8M 25% Energy Services Agmt. Credit Enhancement Project Description: Class B commercial office condo needed creative solution that avoided debt and flexible to address unexpected Sandy impact Clean Energy Upgrades: State-of-the-art digital controls Building management system New floor isolation dampers High-efficiency, variable-speed boilers 10

11 Roosevelt Landings (Manhattan) Project Description: Mixed-income MF complex; 9 buildings and units Loan Details Credit: Urban Greenfit Project Cost $7.4 million NYCEEC Loan $5.0 million Est. Annual Cost Savings $818,000 Est. Energy Savings 18% Close Date Nov 2012 Clean Energy Upgrades: Cogeneration Whole-building air sealing Floor slab insulation Networked programmable thermostats High-efficiency boilers 11

12 Spencer Place (Brooklyn) Project Description: Five-unit rental brownstone property in Bedford-Stuyvesant neighborhood of Brooklyn. Loan Details Credit: Mark Lennihan, Associated Press Project Cost $81,985 NYCEEC Loan $56,985 NYSERDA GJGNY 0% loan $25,000 Est. Annual Cost Savings $3,100 Close Date August 2013 Clean Energy Upgrades: Oil to natural gas conversion Lighting Heating Controls Insulation High-efficiency boilers 12

13 Agenda NYCEEC Program Overview Introduction: Willdan & NYCEEC Loans for Clean Energy Projects Case Studies Demand Generation Next Steps 13

14 NYCEEC Market Segmentation Analysis Set out to understand NYC market positioning o 75 stakeholder interviews o 12 industry segments Key target segments identified 14

15 Outreach Plan Market segmentation informed outreach plan o Target lists: 100+ specific stakeholder contacts in target segments o Events: 30+ events o Team: 17 member outreach team--lead generation o Blasts: 4000 stakeholder touchpoints o Outreach contractors: 6 company utility contractor network 15

16 Opportunity Analysis Results to date: $74M identified o 50% active, 20% dormant, 30% no longer opportunities Primary project sources: Highest-touch o Direct outreach, events 16

17 Opportunity Analysis (contd.) Select customer findings: o Commercial & Multifamily B/C: Best opps (#, $) o Multifamily B/C: High count, smaller $ size o Hospitals: Low count, highest $ size 17

18 Agenda NYCEEC Program Overview Introduction: Willdan & NYCEEC Loans for Clean Energy Projects Case Studies Demand Generation Looking Ahead 18

19 Looking Ahead Lessons learned / paths forward Maintain outreach support that is as dedicated as possible Streamline the process No magic bullet, but sticks & carrots help Financing is a tool; focus on the project 19

20 Questions Thank You! Harry Charalambides Program Manager Willdan Energy Solutions (347)