When you start a renewable energy initiative, funding is likely one of your top priorities. However, if you are in education, government, or operate as a non-profit, your tax-exempt status can dictate your available project financing.
A public-private partnership (PPP) may help you afford your renewable energy project, and SitelogIQ is here to help guide you through the process.
What Is a Public-Private Partnership?
A PPP is a long-term contract between a private company and a government or non-profit organization. Quite simply, it’s used to provide money-saving tax benefits for tax-exempt organizations that would not otherwise qualify for discounts on renewable energy equipment.
Most renewable energy initiatives — such as installing solar panels, geothermal HVAC systems, wind turbines, and similar equipment — have significant design and installation costs. But many of these costs are usually covered by federal income tax benefits, which give businesses back a large percentage of their investment. However, tax-exempt facilities cannot obtain these benefits. These organizations could even end up paying more for their energy-efficient project. That’s where a PPP comes in.
A public organization can partner with a private company — like SitelogIQ — that will take on the full responsibility for the project’s investment and management. We’ll legally own the equipment for a set number of years so that you can pay for its financing through the increased tax benefits. Together, we’ll sign an energy services agreement (ESA) that allows you to use this equipment and benefit from lower energy costs.