Commercial Third Party Owned Systems
Project sponsored systems are another financing structure for attaining 100% Clean Energy in the State of Hawaii by 2045.
How does a third-party owned system work?
- A project sponsor finances the purchase, installation, maintenance, and operation of an energy improvement on a building (owned by an “offtaker”)
- The offtaker pays a set amount for the use of the energy improvement (through a Power Purchase Agreement (PPA) or a service agreement)
Who is eligible?
- Offtakers must be ratepayers who are: nonprofits, small businesses, or multifamily projects
- Properties must be: located within the service territories of the Hawaiian Electric Company (HECO), and fee simple or leasehold (with at least 20 years remaining on the lease)
What are the benefits of an HGIA financed third party owned system?
Ratepayer/Offtaker:
- Loan is between HGIA and the project sponsor
- Offtaker can assume GEMS debt and purchase the sponsored system during life of the system
- Access to cleaner affordable energy without the hassle of ownership
Project sponsor:
- Below market fixed interest rates
- Ability to leverage GEMS funding with bank financing
- Ability to monetize tax credit and energy rebate
- On-bill repayment