Finance Comparison Dev – Empower Equity (EMPEQ)

^* When required, the guarantee is ALWAYS a lien against the property. ^** EMPEQ has worked to make the UnFinancing Subscription an off-balance sheet item, but ultimately we are not CPAs and a customer should always seek professional accounting advice.
	UnFinancing Subscription	Energy Services Agreement	Lease	Loan	PACE Loan	Energy Performance Contract	On-Bill Financing	Power Purchase Agreement
Down Payment?	No	No	Sometimes	Almost Always	No	No	No	No
Underwriting	Approvals with just a Corporate Name and Address	Traditional	Traditional	Traditional	Traditional	Traditional	Pay Utility On Time Plus Application	Traditional
Contract Size	Small	Small to Large	Medium to Large	Medium to Large	Large	Very Large	Small	Medium to Large
Amount of Info Needed From Customer	Lowest	Medium to High	Low to Medium	Medium to High	High	High	Low to Medium	Low to Medium
Equipment Ownership?	Third-Party (EMPEQ)	Third-Party	Customer	Customer	Customer	Customer	Customer	Third-Party
Fixed Payment?	Yes	Sometimes	Yes	Yes	Yes	Sometimes	Yes	No (Take or Pay)
Includes Service?	Yes	Sometimes	No	No	No	Usually	No	Usually
Personal Guarantee	No	Almost Always	Almost Always	Almost Always	Sometimes^*	Almost Always	Sometimes	Sometimes
Predetermined Customer Buyout at End of Contract?	No	Usually	Sometimes	N/A	N/A	Sometimes	N/A	Sometimes
Requirement for a cash flow positive project	No	Yes	Sometimes	Sometimes	Yes	Yes	Yes	Sometimes
Can be classified as a Common Area Maintenance (CAM) charge in a commercial lease?	Yes	No	No	No	No	No	No	No
Negatively Affects Borrowing Ability (Can Be Considered "Off-Balance Sheet"?	No^**	Sometimes	Yes	Yes	Yes	Sometimes	Yes	Sometimes
Cancellation?	Yes	Sometimes	No	No	No	No	No	No
Requires Expensive Measurement & Verification by Engineers to Prove Savings?	No	Yes	No	No	Sometimes	Yes	Yes	Sometimes
Requires Expensive Energy Modeling and Extensive Scopes of Work?	No	Yes	No	No	Yes	Yes	Yes	Yes
Enhanced Reliability of Operations	Yes	Yes	No	No	No	Yes	No	Almost Never
Close Time	Fastest	Medium to Long	Short	Medium to Long	Long	Long to Very Long	Long to Very Long	Long to Very Long
Speed of Approval	Near Instataneous	Slow	Fast to Medium	Medium to Slow	Medium to Slow	Slowest	Medium to Slow	Medium to Slow
Available Portfolio Wide	Yes	Yes	Yes	Yes	No	Yes	No	No
Length of Contract (Years)	5 to 10	5 to 15	3 to 7	2 to 7	5 to 25	10 to 20	2 to 15	5 to 25
Requires Mortgage Lender Approval	No	No	No	No	Yes	No	No	No
Deeper Relationship with the Customer	Yes	Yes	No	No	No	Yes	No	Yes
Equipment Types	All	Almost Only Energy Efficient	All	All	Almost Only Energy Efficient	Almost Only Energy Efficient	Almost Only Energy Efficient	Solar, CHP, Only Energy Producing Assets
Enables Contractors to Sell a Service Contract with Install	Always	Always	Sometimes	Sometimes	Sometimes	Always	Sometimes	Always
Usual Interest Rates and/or Cost of Financing	Low to Medium	Medium	Low to Medium	Lowest to Medium	Medium	Highest	Lowest	Highest
References		US DOE: Efficiency As A Service	US DOE: Lease Financing	US DOE: Loan Or Debt Financing	US DOE: Commercial Property Assessed Clean Energy	US DOE: Energy Savings Performance Contract	US DOE: On Bill Financing Or Repayment	US DOE: Power Purchase Agreement

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