CONTRACT VEHICLES SUPPORTED BY METCO
WHAT IS A CONTRACT VEHICLE?
A contract vehicle is a method that, with pre-negotiated terms and conditions, enables districts to purchase both energy and non-energy resources at low administrative costs. It is essential to achieve long-term energy efficiency and sustainability goals.
How ESPC works
CONTRACT VEHICLES PROGRAM WITH METCO
METCO leverages unique contract vehicles to produce low-cost qualifying energy systems. Our contract vehicle program comprises the following four aspects:
- Section 179D Tax Credit Financing: This allows public building owners to claim a tax-deduction and allocate that deduction to METCO. So, METCO can use these tax credits to produce low-cost, high-performance improvement projects, including HVAC controls, LED lighting, water efficiency, parking lots, windows, and more for the district.
- SECO LoanSTAR Funding: LoanSTAR provides low-interest rate loans to assist public entities for a variety of Energy Cost Reduction Measures (ECRMs), including HVAC, lighting, insulation, solar water heating, and photovoltaic panels. LoanSTAR program is funding METCO for up to $8 million per project, with 15-year mortgage rates.
- General Obligation (GO) Bonds and Certificates of Obligation (COs): METCO uses GO bonds and COs for non-energy projects. Go bonds enable us to use legally available resources for repaying the bondholders while COs are paid either via property taxes, pledged revenues, or a combination of both.
Commercial Leases: With subordinate financing of 3% and terms up to 20 years, this loan allows METCO to do long-term improvement commitment for any scope of work.
BENEFITS OF CONTRACT VEHICLES PROGRAM
LOW-COST POWER EFFICIENCY
The program leverages tax credits to offer efficient on-site energy solutions and address the challenges of high utility prices.
SUSTAINABLE ENERGY UTILITY
Contract vehicles combine the use of energy conservations and renewable retrofits to create financially self-sufficient and sustainable entities.
FINANCING ENERGY UPGRADES
METCO financing partners cover the costs for improvements and upgrades at a cost that is cheaper than the actual prices.
COMMERCIAL REAL-ESTATE INVESTMENT
The projects offer long-term sub financing options to reduce operating expenses and involved capital costs for enhancing assembly productivity.
Why Choose METCO?
METCO is one of the most competent resources to get best-in-class energy efficiency solutions. Our experts are leaders in their fields, and they work 24/7 to offer industries with personalized engineering, design and construction services.
METCO follows best practices guaranteeing a high level of energy efficiency, maximized productivity, and an optimized economy of operation. We use new contract vehicles to work as a utility for districts and provide them with qualifying retrofit installations and upgrades.