The primary challenge the incentive bridge loan aimed to solve was that the ConEd MFEEP program, like many other utility incentive programs, does not provide incentive payments until all work has been installed and verified. This creates challenges for contractors who do not have large amounts of upfront capital and can lead to delays in purchasing equipment for the project as well as finalizing installations at the property. In some cases, a lack of upfront working capital prevents contractors from undertaking certain projects entirely.
To navigate this barrier, BES approached NYCEEC looking for an incentive bridge loan. BES was familiar with incentive bridge loans, as NYCEEC previously provided one to BES in 2020, which facilitated the application. To begin the process, BES provided NYCEEC with all necessary documentation on the company as the borrower and design plans for the project.
BES worked with Willdan, the MFEEP program administrator working on behalf of ConEd, to determine the amount of incentives they would receive. BES provided NYCEEC with due diligence materials to provide details on the scope of the project and evidence that BES was compliant with the MFEEP program requirements.
NYCEEC spoke with the MFEEP Project Coordinator at Willdan regarding the project, who confirmed that the appropriate information had been submitted, the sites had been successfully inspected, and that there were no known issues that would impede receipt of the incentive.
The first round of incentive payments from ConEd was received upon project completion in January 2023, and the NYCEEC loan was repaid soon after.
NYCEEC provided an Incentive Bridge Loan to BES which enabled them to cover upfront operational costs incurred during the execution of the project.
NYCEEC provided a $750,000 loan to BES with an initial nine-month term, and with the option to convert to a 1.5-year fully amortizing loan upon satisfaction of appropriate conditions. All MFEEP incentive payments came directly to NYCEEC and were mandatory prepayments under the loan.
Over 5,500 steam traps, including both in-unit steam traps and common area steam traps, were installed across seven buildings in New York City. Steam traps reduce steam-related energy losses, which improves building efficiency.
• Building Efficiency Services (BES) - was the borrower as well as the key contractor for the project.
• New York City Energy Efficiency Corporation (NYCEEC) - provided the incentive bridge loan to BES.
• Consolidated Edison (ConEd)- offered incentives to contractors for the installation of energy efficiency equipment and technology.
• Willdan Group - worked on behalf of ConEd as program administrator to review incentive applications and verify project completion.
NYCEEC’s mission is to deliver financing solutions for energy efficiency and clean energy in communities. Without their bridge loan, BES might not have been able to complete the project due to capital constraints. By providing the bridge loan, NYCEEC helped reduce emissions, improve occupant comfort, and save money.
NYCEEC’s loan helped facilitate BES’ implementation of energy efficiency measures amounting to savings of 135,330 MMBtu of lifetime project energy savings of more than 6,840 metric tons of CO2e in lifetime projected GHG savings (approximately 978 metric tons of carbon dioxide equivalent per year).
