DREEM: a possible solution for a wide range of projects
The DREEM model secures a special type of energy services contract to the deed or title of the property, and the cashflow-positive savings on this contract are used to repay the lenders/investors. The contract is for the provision and maintenance of the improvements, and is therefore an operating expense for the owner. The energy services contract may include the creation of a special-purpose vehicle for securing the investment, and may include guarantees of performance and savings.
How Does It Work?
As with PACE, clean energy projects are 100% financed with no upfront costs, and off-balance-sheet. Projects are designed to be cash-flow positive, saving money from the start. Repayment is through an Energy Services Contract registered on title, specifying it as non-callable, non-recourse, and fully transferable on sale. Investment tax credits, solar renewable energy certificates (SRECs), and accelerated depreciation are retained by the investor and taken into account in determining monthly repayments.
New “Pre-PACE” Financing for Clean Energy is Now Available at RegenerativeFinancing.org