Energy Asset Division

Improving Bottom Lines Through Smart Energy Investments

​A Division of MidEnterprises, LLC


Funding Options

Power Purchase Agreement

Power purchase agreements (PPAs) are used for power projects where the projected revenues of the project would otherwise be uncertain and so some guarantee as to quantities purchased and price paid are required to make the project viable

A Power Purchase Agreement (PPA) secures the payment stream for a financed project typically delivered by an independent or third party entity. It is between the purchaser or "offtaker" and most likely a private developer who finances and delivers turn-key project. 

The price charged for the power will consist of a charge to cover the project's fixed costs (including a return on equity for the developer) plus a variable charge to cover developer's variable costs. The availability charge relates to the availability of the asset and the variable charge is calculated according to the quantity of power supplied.

Equipment Finance/Lease

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When a business chooses to finance or lease, the cost of the equipment is spread over a multiple-year term keeping more working capital liquid to fund investments such as additional payroll or facility expansion. The business has the (profit-generating) equipment when it is needed, rather than waiting until cash is on hand. 

Whether a small family enterprise or a multinational corporation, all companies share a common denominator—cash flow is the lifeblood of business. Even for companies with large cash reserves, financing equipment acquisitions makes business sense by matching cost to benefit, so cash flow is predictable and justifiable.

Rather than tying up precious working capital or bank lines, smart businesses let the equipment benefits pay for the equipment...while their cash reserves and borrowing power work to fund their future success. And that’s just the beginning of equipment leasing benefits.

PACE Finance

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​PACE is a national initiative where programs are established locally and tailored to meet regional market needs. It all starts with states passing legislation authorizing municipalities to establish PACE programs and where local governments can develop a variety of programs to fit respective markets.. Regardless of model, there are several keystones that hold true for every PACE program.

• PACE is voluntary for all parties involved.

• PACE can cover 100% of a project’s hard and soft costs.

• Long financing terms up to 20 years.

• Can be combined with utility, local and federal incentive programs.

• Energy projects are permanently affixed to a property.

• The PACE assessment is filed with the local municipality as a lien on the property.

Tax Considerations

The 179D commercial buildings energy efficiency tax deduction primarily enables building owners to claim a tax deduction for installing qualifying systems and buildings. Tenants may be eligible if they make construction expenditures.

Deductions are taken in the year in which systems and buildings are placed in service. The 179D tax deduction has been in effect since January 1, 2006.
A tax deduction of $1.80 per square foot is available to owners of new or existing buildings who install (1) interior lighting; (2) building envelope, or (3) heating, cooling, ventilation, or hot water systems that reduce the building’s total energy and power cost by 50% or more in comparison to a building meeting minimum requirements set by appropriate ASHRAE Standard