Part I, Introduction:
To make a proper lemonade you need the three basic ingredients, water, lemons and sugar.
Much like a lemonade, to build a proper EE/RE financing program- there are three key ingredients that you can’t do without. Here at Harcourt Brown & Carey, we refer to these as the three C’s of Capital, Confidence, and Convenience. This four part blog post will explore these three key ingredients, and how they combine to create a successful finance program across three main links in the chain- the financial institution, the contractor, and the borrower/end user.
In today’s post we’ll start with simple definitions and key elements.
Capital: Money to lend with attractive interest rates and terms to buyer and high applicant approval rates for the seller. Attractive yields to investors are also critical here.
Confidence: Buyer/borrower comfort and trust with the project, the financial product, and the providers. Investors’ confidence in energy savings and yield. Utilities/regulatory commission and others’ confidence in incremental energy savings. Confidence among all parties in one another. And finally, confidence from all parties that a robust EE market will emerge to justify investments of time and money.
Convenience: The provider of financing must give the borrower and the seller/contractor a simple and quick process. Other players, such as state and local government contractors and utilities, must take on roles that fit with their core competency.
Combine, sugar, lemon and water and you’ve got a refreshing summer beverage. Combine the three C’s and you can successfully deploy capital, support contractors, and install energy efficiency; just the thing on a hot summer’s day.
Stay tuned for our next post where we do a deeper dive into the concept of Capital: Where it comes from, and how it works.