Energy Efficiency Financing
The best intentions to improve building performance have often been thwarted by the lack of capital. Vendor-provided financing often comes with challenges for private-sector building owners due to lender restrictions. With the acquisition of Transcend Equity Development Corporation, SCIenergy has an innovative financing structure—MESA™ (Managed Energy Services Agreement)—to provide energy-saving retrofits without a capital outlay from the building owner. Building owners pay a service fee (operating expense) roughly equal to the historical utility bill. SCIenergy pays the utility bill, funds and implements (with its partner network) the improvements, and generates savings to provide a financial return to investors.
The “investors” include both equity and debt sources of capital who understand financial and performance risk associated with energy efficiency. Currently, SCIenergy has a joint venture with Mitsui USA to generate and deploy robust energy efficiency projects in commercial buildings, private universities, and healthcare segments in the U.S. Additionally, BB&T is providing debt capital for current projects.
SCIenergy is raising additional equity and debt capital to support the Catalyst Equity Fund and scaling MESA. Interested investors and banks should contact CatalystEquityFund@scienergy.com.