Overcoming the finance hurdle
Customers want to invest now in energy efficiency, carbon reduction and renewable technologies
- Lack of budget can slow/stall this investment.
EDP finance helps the customer
- Match costs to the planned benefits or savings.
- Use the revenue budget.
- Fix energy costs.
- Defer payments to the next financial year.
- Fund the total project, including soft costs.
How does it work?
- The customer signs the edp finance agreement.
- The agreement sets out the payment amounts and the dates on which the payments are to be made.
- The payments are fixed, not subject to variation in interest rates, energy costs etc.
- The suppliers receive payment when the system and services are accepted by the customer.
- The customer makes the payments over time to the funder, Cooperative Bank.
- Payments must be made in full on the due dates.
Annual costs/benefits
What can be financed?
- The initial system cost and any delivered services.
- Usually financed over.
- 5 to 7 years for private sector (may be longer, subject to credit).
- Up to 10 years for public sector.
- The payments can be profiled to match the customer’s budget or the benefits of the system.
At the end of the agreement …
- The customer can either –
- Return the system at the end of the contract and make no further payments,
- Continue to use the system at a reduced annual cost,
- Purchase the system.