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Financing for CHP

CHP Financing Basics

While packaged CHP systems offer significant technical and economic benefits to end-users, the financing process for CHP projects can be complex and often misunderstood. End-users and developers must navigate a complex landscape of project financing options and provide detailed project information in order to acquire project funding. While there are many financing mechanisms available to CHP end-users, the best option is unique to each customer and depends heavily upon a number of factors such as available capital, the regulatory landscape, and the host/owner’s experience with project development. The graphics below highlights the CHP financing landscape and offers specific definitions and project examples for each option. Click on the green text boxes below for more information.

Tree Loans Leases On-Bill Commercial PACE Efficiency-As-A-Service Energy Savings Performance Contracting (ESPC) Power Purchase Agreements (PPAs)

Source: Adapted from Better Buildings Financing Navigator, available at: