Financing Distributed Generation

Conference · Fri Jun 29 00:00:00 EDT 2001

DOI:https://doi.org/10.1092/5CHV-C83Y-G2RR-RCVV· OSTI ID:786352

Walker, A

This paper introduces the engineer who is undertaking distributed generation projects to a wide range of financing options. Distributed generation systems (such as internal combustion engines, small gas turbines, fuel cells and photovoltaics) all require an initial investment, which is recovered over time through revenues or savings. An understanding of the cost of capital and financing structures helps the engineer develop realistic expectations and not be offended by the common requirements of financing organizations. This paper discusses several mechanisms for financing distributed generation projects: appropriations; debt (commercial bank loan); mortgage; home equity loan; limited partnership; vendor financing; general obligation bond; revenue bond; lease; Energy Savings Performance Contract; utility programs; chauffage (end-use purchase); and grants. The paper also discusses financial strategies for businesses focusing on distributed generation: venture capital; informal investors (''business angels''); bank and debt financing; and the stock market.

• Research Organization: National Renewable Energy Lab., Golden, CO (US)
• Sponsoring Organization: US Department of Energy (US)
• DOE Contract Number: AC36-99GO10337
• OSTI ID: 786352
• Report Number(s): NREL/CP-710-30554
• Country of Publication: United States
• Language: English

Related Subjects

14 SOLAR ENERGY
24 POWER TRANSMISSION AND DISTRIBUTION
30 DIRECT ENERGY CONVERSION
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
33 ADVANCED PROPULSION SYSTEMS
99 GENERAL AND MISCELLANEOUS
BUSINESS
CAPITAL
DISTRIBUTED GENERATION
ENGINEERS
FINANCING
FINANCING STRUCTURES AND OPTIONS
FOCUSING
FUEL CELLS
GAS TURBINES
INITIAL COSTS
INTERNAL COMBUSTION ENGINES
INVESTMENT
MARKET
PERFORMANCE
SAVINGS
STRATEGIES