On-bill financing for new high-efficiency commercial HVAC equipment is a great new way for building owners and facilities managers to keep operating and equipment costs to a minimum. On-bill financing essentially removes the large upfront investment required to purchase and install new high-efficiency commercial HVAC equipment, removing one of the major barriers to widespread adoption of this technology.
Instead of paying for a large chunk of these systems at once, customers can now integrate this cost into their utility bills, which makes a huge difference in the way these systems are paid for.
How On-Bill Financing Works for High-Efficiency Commercial HVAC Equipment
On-bill financing is a non-traditional loan made to a building owner who is using the proceeds to invest in energy efficiency improvements in their building, including high-efficiency commercial HVAC equipment. The loan repayment costs are added to the owner’s monthly utility bill until the loan is repaid in full.
This alleviates the upfront cost of investment by distributing the cost of the system over time, to a manageable degree, directly on the utility bill the owner is already paying. This is a highly cost-effective incentive for building owners to invest in commercial HVAC equipment that’s more energy efficient and environmentally sustainable.
In the state of New York, “bill neutrality” is strictly enforced. This mandates that energy savings from new commercial HVAC equipment must be greater than or equal to the monthly loan payments for the equipment. This essentially guarantees cost savings for building owners over the lifetime of the new equipment.
Why Consider On-Bill Financing for New Commercial HVAC Equipment?
For building owners considering investing in new high-efficiency commercial HVAC equipment, on-bill financing offers an affordable way to purchase and install the newest HVAC technology.
The energy efficiency these systems bring can yield enormous cost savings, often far exceeding the amount of loan payments. High-efficiency commercial HVAC systems keep tenants comfortable with more consistent temperature control, humidity control, and better indoor air quality.
To eliminate the upfront costs of investing in new equipment, learn more about Donnelly Mechanical’s on-bill financing services to realize energy efficiency and cost savings in your building.