High Upfront Costs

Many clean energy projects, especially renewable energy generation and larger energy efficiency projects, require significant capital investments. Project developers and residential and commercial end users may not have sufficient cash on hand to fund the initial installation costs of a clean energy project, which can include project assessment and feasibility, equipment purchases, and project construction. Thus, financing in the form of a bond, loan, lease or power purchase agreement may be needed to amortize the costs over multiple years.