Creative New Energy Finance Solutions for Developers and Condo Associations
Green energy requirements for new developments often cause a little churn in the stomachs of new developers. Understanding the technology and figuring out the financing can make this challenging component of the project a real headache.
Similarly, HOAs often overlook green energy alternatives when reviewing options for replacing or upgrading their systems. Unless they have the guidance of a professional on hand that can help them navigate choices, financing, timelines etc. it becomes too overwhelming to be viable. That’s why when I met Jack Sterne a few months ago my ears perked up. Jack owns a company called Palmetto Green and they’re making green energy palatable for developers and HOAs in DC, Maryland and Virginia.
Palmetto Green is an innovative clean energy firm that helps property developers reduce their cost per square foot and improve net operating income. They do that by financing energy systems as operational expenditures, rather than capital expenditures. That reduces construction budgets and frees capital for other uses.
Their approach works best if you want to:
- Increase or further leverage your project equity.
- Maximize your project’s net operating income.
- Improve energy savings without a long payback period.
- Eliminate performance risk of your key energy systems.
- Utilize a team of energy sector experts to optimize your energy systems.
- Market your project as an efficient, carbon-reducing, green property.
They can do HVAC, lighting, building controls, natural gas cogeneration, refrigeration, and hot water systems. They can work with your architects, engineers, and contractors or they can provide the services turnkey.
By maximizing the energy efficiency of their projects, developers can obtain marketing benefits with tenants who care about going “green,” or who just want to have lower energy bills. Such projects also have an easy path to LEED certification, providing additional marketing benefits.
Palmetto Green’s model is subscription-based with a set monthly payment that can be passed through to every unit in a building, and no cash up front. This makes it work well for condo associations who want to do lighting or HVAC upgrades.