CapX Partners has launched a new online platform called Energy Conservation and Performance (E-CAP), to help building owners, ESCOs, contractors and engineers secure financing for their energy savings projects.
Partnering with energy insurer Energi, the E-CAP Platform will incorporate Energi’s energy efficiency experience into the online underwriting process to help securitize energy savings and protect project guarantees.
The E-CAP process will provide energy efficiency providers with access to best practices, performance guarantees and financing options. At first, E-CAP will enable qualified energy efficiency providers to identify efficiency projects, as well as bid for them on the “Honest Buildings” network.
The Platform will provide development memorandums, credit applications and project implementation plans to facilitate the development process, then offers users turnkey performance insurance and financing options.
According to Eric Starr, Partner at CapX Partners, “Insurance products such as those offered by Energi aren’t typically purchased by investors. However, obtainment of insurance can alter the risk-return profile of an alternative energy investment enough to encourage an otherwise-unwilling investor to get involved.”
U.S. energy service companies (ESCO) have contributed significantly to the rise of energy efficiency over the past several decades, with Navigant estimating the U.S. ESCO market at $4.9 billion in 2013. Notwithstanding, industry experts assert that inertia is the key impediment from greatly expanding this market. The E-CAP Platform increases capacity (financing and rated performance guarantees) while also providing cost benefit and peer building analyses to building owners.
“Energy efficiency is unanimously regarded as a critical economic and environmental tool, and yet investment is still not widespread,” said Kevin Kaminski, senior vice president of Alternative Energy Solutions at Energi.
Founded in 1999, CapX Partners is a specialty finance company that focuses on private equity and venture backed portfolio companies looking for debt financing in the $2-$20 million range. CapX favors manufacturing, distribution, technology, energy and healthcare industries with an emphasis on revenue producing fixed assets.
Energi is a Peabody, Massachusetts-based industrial reinsurance company that provides specialized insurance and risk management products to targeted market segments of the North American energy industry. The core programs include fuel distribution, fuel transport, energy construction, agricultural cooperatives, renewable energy, energy efficiency, utilities and oil & gas exploration. Founded in 2005 by insurance professionals and energy industry veterans, Energi is licensed in all 50 states.