Leasing & Energy Savings Guarantee.
As part of our insurance underwriting process, each equipment supplier’s proposal is validated and a cash flow produced in tandem with our finance underwriting to ensure that the guaranteed savings element (in this case 80% of projected energy savings) is always greater than the funding costs so that the entire project is financially risk free.
Providing a risk free and fully funded option (including the insurance premiums, installation and design costs) allows projects to proceed meaning the client also derives additional benefits from reduced maintenance costs and reduced CO2 liabilities under the Government’s Carbon Reduction Commitment Energy Efficiency Scheme.
The figures for this particular project were as follows:
Note: Years 6 & 7, all savings accrue directly to the client.
The cost to our client’s business had it not proceeded would have been as follows: