Joule Assets to Offer Project Financing With 10 Energy Efficiency Contractors

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New Strategic Partners’ Project Development Pipeline of $270M, Joule to Target Initial $90M Deployment

Joule Assets’ ability to offer conditional cash flows for projects is what sets it apart from standard financing options.

Joule Assets Inc., the leading finance provider for the energy efficiency and demand response industries, today announced strategic financing partnerships for 10 U.S.-based energy efficiency contracting firms, with a total pipeline that is projected at $270M, of which Joule Assets will target an initial $90M deployment. In a given year, a typical energy efficiency contractor may see $2-3M worth of projects stall due to a customer’s budget constraints for upgrades. The project financing from Joule Assets enables these small-to-mid-sized contractors to offer in-house financing, significantly shortening sales cycles and extending their project pipelines.

One of these contractors, NorthWrite, a leading energy information management company specializing in the delivery of energy and facility solutions, expects to finance 50-100 energy efficiency projects in the next 12 months across a spectrum of small commercial buildings, including schools, restaurants, national chains and offices.

“Joule Assets’ ability to offer conditional cash flows for projects is what sets it apart from standard financing options,” said Patrick O’Neill, founder and CEO of NorthWrite. “In true partner fashion, the team at Joule helped us envision, create and work through the different financing scenarios available to us. They have a level of domain knowledge around conditional cash flows that others deeply discount or won’t even consider, which is what makes these projects possible.”

“Our model, which places financing decisions in the hands of the vendors, not only empowers the small-to-midsized contractors, but it accelerates the adoption of energy reductions assets as a whole by reducing overall due diligence and transaction costs," said Joule Assets CEO Mike Gordon. “We’re pleased to provide contractors with investment dollars that will enable them to significantly increase their deal closure rate and scale rapidly.”

The financing is funded from the Joule Energy Reduction Asset (ERA) Fund [ERA Fund Investor Disclaimer. The ERA Fund is managed by Joule Assets. Targeting initially a deployment of $100M in capital, the Joule ERA Fund takes a transformational approach to both investment and energy efficiency. Through extensive industry expertise in conditional cash flows from demand response and energy efficiency certificates, Joule Assets provides returns from monetized energy savings and vendor revenues back to the Joule ERA Fund, producing exceptional and stable returns for investors while also reducing critical levels of greenhouse gas emissions. By creating a new marketplace for energy efficiency finance, these investments are expected to deliver base returns of 6-10% to ERA Fund investors, while also offering additional mezzanine returns of 5-15%, and potential equity participation, totaling estimated average targeted returns of 18% - giving an attractive low-risk entry point to the previously closed energy reductions assets market.

About Joule Assets
Joule Assets delivers financing solutions for energy efficiency and demand response initiatives and projects. We create Energy Reduction Assets by integrating simple financing options with untapped revenue streams from our market analysis software tools like ERA-DR. Leveraging our proprietary database, software and extensive industry expertise, our mission is to expand commerce and reduce barriers in these complicated markets by creating transparency and providing financing solutions.

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Mark Argyle
Joule Assets
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since: 09/2011
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