Crop Haven™ offers a myriad of financing solutions for CHP to ensure the energy savings more than cover the financing costs, for a cash flow positive approach to further enhance the ‘no black or brown out’, ‘no energy spikes’, ‘no runaway utility rates’ benefits of CHP.
Off-grid Cooling, Heating, Power is now affordable.
CROP HAVEN’S™ CHP FUNDING PROVIDES THE MEANS TO ENERGY INDEPENDENCE.
processors offer exceptional supplemental coverage beyond what’s available today to any indoor or outdoor cannabis grower.
CHP is an efficient and clean energy solution to generate electric and thermal energy from a single fuel source – instead of purchasing electricity from the grid and producing thermal energy from an onsite boiler or furnace.
Fuel is typically combusted to generate electricity in a as turbine), while the energy stored in the hot exhaust is captured to provide heating or cooling.
CHP systems save money for their host facilities, leading them to be more competitive in their industries, and they can provide energy independence and resiliency, allowing them to continue operations during grid outages.
Because capital costs are significant, financing decisions are a critical step in the development of any CHP project. The ideal financing mechanism is unique to each client.
Lenders will commonly provide financing for up to 80 percent or more of a system’s installed cost. Loans are often paid back by fixed monthly payments (principal plus interest) over the period of the loan (up to 10 years). Interest payments are tax deductible.
Here the building owner pays through a property tax assessment. The loan is tied to the property, and transfers with changes in ownership. PACE increases property value and offers long-term financing, for immediate positive cash flow.
Energy savings are used to offset monthly lease payments, for positive cash flow. ‘Off-book’ financing available. Lessee is not the owner yet has all the energy benefit. Lessor captures the depreciation. Lessee can purchase the CHP after a time or extend the lease.
A PPA is an off-balance sheet contract between a power producer and the consumer who agrees to buy all of the power and thermal energy the CHP system produces, at a rate less than or equal to the market rate. The provider owns and operates the CHP unit.
A SPE is a legal entity used to build, own, and operate the CHP, to isolate the corporation from risk. The electricity is purchased at set rates from the third-party owner – typically by partnering with an ESCO by entering into an energy savings performance contract (ESPC).