Nuvo group has partnered with the CEFC and major financial institutions to provide finance for investments in energy efficiency projects.
The Clean Energy Finance Corporation (CEFC) and Commonwealth Bank are financing loans tailored for businesses wanting to save on energy costs.
The CEFC and Commonwealth Bank have established a Master Funded Participation Agreement (MFPA) to co-finance energy efficiency, low emissions technology and small-scale renewable projects. The CEFC investment commitment is $50 million which is matched by funding from Commonwealth Bank.
The product, known as the Energy Efficient Loan, typically ranges from $500,000 to $5 million, or upwards. All loans are assessed under CEFC project eligibility criteria.
Energy Efficient Loan supports businesses to lower energy costs The Energy Efficient Loan is designed to help businesses, particularly those from the manufacturing sector, upgrade equipment to reduce energy costs.
The loan can be used to finance up to 100 per cent of purchase price and allows businesses to preserve working capital for other purposes.
The equipment being financed acts as security for the loan and loan terms can be aligned to the effective life of the equipment.
Wide array of energy saving technologies covered These include, but are not limited to: Energy efficient lighting, industrial refrigeration, methane capture, heat exchangers, energy efficient motors, pumps and fans, solar panels, compressed air and variable speed drives, cogeneration and tri-generation plants. An average financial yield of about 7%
The Clean Energy Finance Corporation (CEFC) invests using a commercial approach to overcome market barriers and mobilise investment in renewable energy, energy efficiency and low emissions technologies.
As at 30 June 2014, the CEFC has contracted investments of over $900 million in projects with a total value of over $3 billion. The CEFC invests for a positive return, with its more than 40 direct investments and 25 projects co-financed under aggregation programs expected to achieve an average financial yield of about 7 per cent.
When fully operational, these CEFC investments are expected to achieve abatement of 4.2 million tonnes of CO2e per annum with a positive net benefit to the taxpayer. They help to improve energy productivity for businesses across Australia, develop local industries and generate new employment opportunities.