Lithium iron batteries are a versatile technology. These batteries have a long life-span, offer high power density and have 100% of their capacity available. There are plenty of ways to finance them, making lithium iron batteries a feasible option for business of all sizes. Outlined below are 6 great ways to fund a lithium iron battery project.
Financing options for lithium iron batteries:
1. C-PACE financing
C-PACE provides 100% funding for energy efficient and renewable energy improvements. C-PACE financing is an off-balance sheet funding tool that adds an annual assessment to your property taxes and doesn’t utilize any of your existing lines of credit. PACE is designed to help businesses and property owners make improvements that result in positive annual cash-flows. This can be a great way to fund lithium iron batteries.
2. Managed energy service agreements
MESAs are contracts under which a third-party energy efficiency contractor assumes the energy management of a client’s facility, including the installation of energy efficiency upgrades and responsibility for utility bills. A third party contractor does this in exchange for a series of payments based on the customer’s historic energy use. These periodic payments are usually lower than previous utility expenditures.
3. Energy service performance contracts
ESPCs are offered by certified Energy Service Companies (ESCOs). They essentially use future energy savings to pay for facility upgrades, such as lithium iron batteries. Under these agreements, your ESCO is required to provide a contracted amount of energy savings in return for a monthly premium, thus ensuring security in your energy project investment. Energy savings are guaranteed, and if the savings do not occur naturally, the ESCO will pay the savings out of pocket. ESPC contracts can easily be combined with or a replacement for MESAs.
4. PPA
If businesses want to avoid debt or would prefer to not directly own the energy assets from an energy project, a power purchase agreement is a great option. PPAs offer the benefits of reduced utility expenditures while only requiring a simple monthly or yearly payment.
PPAs do not disturb any existing mortgage or property line and so are appropriate for customers whose properties are otherwise encumbered.
For nonprofits who are unable to take advantage of the investment tax credits, we can facilitate PPA contracts available with tax equity investors who will off-take the tax credits in exchange for an equity investment that decreases the cost to the customer.
5. Rebates
Various government departments and utility providers across the United States offer substantial rebates which can provide an instant financial incentive for starting an energy project. These typically subsidize costs for: building automation systems, lighting retrofits, HVAC upgrades, solar panels, energy efficient water heaters and more. Rebates can help reduce system costs by 10-20%.
6. USDA REAP grants & loans
The USDA Rural Development Office offers a grant of up to 25% of total project costs and a loan of up to 75% of total project costs which can be used for eligible projects. This is a great financing option for those looking to save money on their energy consumption.
- Terms: For a renewable energy grant, the grant will apply to projects in the $2,500-$500,000 threshold. For energy efficiency grants, the threshold is $1,500-$250,000.
- Click here to view USDA REAP eligible towns and cities.
- Click here for more information on how to contact local USDA Rural Development Offices.
Get lithium iron batteries installed today
At EnergyLink, our team has extensive experience installing lithium iron batteries. We know how to incorporate them into a larger, holistic renewable energy project that will maximize potential energy savings for your organization.The success of any given technology depends on the needs of a company. Contact us to schedule an energy audit and identify those needs.
