DREEM: a New Financing Tool for Energy Services Companies
Developed in association with Ronald S. Borod of Ram Island Strategies.
Deed-registered Renewables and Energy Efficiency Measures (DREEM) Financing includes a special type of energy services contract which is recorded in the title registry subordinate to the first mortgage lien but protected against foreclosure risk, and the cash flow-positive savings on this contract are used to repay the lenders/investors. The contract is for the provision and maintenance of the improvements, and is therefore an operating expense for the owner. The energy services contract may include the creation of a special-purpose vehicle for securing the investment and enabling third-party tax equity participation.
How Does It Work?
As with PACE, clean energy projects are 100% financed with no upfront costs, and off-balance-sheet. Projects are designed to be cash-flow positive, saving money from the start. Repayment is through a recorded Energy Services Contract, which is structured to be non-callable, non-recourse, and fully transferable on sale. Investment tax credits, solar renewable energy certificates (SRECs), and accelerated depreciation are retained by the investor and taken into account in determining monthly repayments.
We are actively seeking interested capital providers, energy services companies, and property owners wishing to improve their buildings and operations. If this program interests you, call us today.
Contact us to Discuss Financing for Your Next Clean Energy Project:
Jonathan Cloud, Executive Director • 908-581-8418 • jcloud@regenerativefinancing.org
Gus Escher, Director of Finance • 609-683-1666 • gescher@regenerativefinancing.org
Victoria Zelin, Director of Development • 908-507-3150 • vzelin@regenerativefinancing.org
RegenerativeFinancing.org is a project of Possible Planet, a 501(c)(3) Nonprofit.
Possible Planet is the umbrella nonprofit for New Jersey PACE, NICCE, DREEM, and the Center for Regenerative Community Solutions (CRCS).
More at PossiblePlanet.org