HBC Energy Capital

Sometimes the best energy efficiency proposal in the world isn’t enough to overcome a business owner’s most challenging hurdle: Money.
Even with incentives, rebates and energy savings, businesses need capital to invest in projects. Trade allies can find themselves stuck between the customer’s financial needs and wanting to move the project forward.

HBC Energy Capital, a new provider to the Northwest, provides access to lighting project financing by matching third-party capital providers to clean energy projects. This resource can help trade allies who face losing projects over customer concerns about funding.

The company began as a consulting firm, developing financing products and programs to finance clean energy projects across multiple sectors. Over time, they realized that their capital sources had plenty of money available to lend, but few borrowers to lend that money to.

“We saw a gap in the marketplace,” said Matthew Brown, HBC principal. “Contractors aren’t always comfortable talking to customers about financing or don’t have expertise in financing issues. Likewise, financing companies are not well-equipped to talk to contractors about energy efficiency, and may not have access to customers.”

The company works with a stable of lenders, and has extensive experience working with contractors directly and through utility programs. Contractors bring projects of any size to HBC that might need financing, and the company matches the project with one of their lenders. During the proposal stage, HBC provides an approximate quote that combines energy cost savings with estimated interest rate and payments. Once a customer opts for financing, HBC steps in to manage the process so contractors don’t have to.

“We try to structure every project so it is cash flow positive for the customer,” explained Brown. “One of the benefits of financing is that customers can get the value of the lighting right away with no cash out the door.”

Lighting Specialist John Wilmoth says trade allies should be mindful of the financing question during their discovery process. Trade allies can make themselves more valuable by addressing a lighting problem and financing solution at the same time. Questions to ask may include:

• What are your payback requirements?
• What is your required internal rate of return?
• Do you have a capital budget or other funds for the project?
• How can I help you with project financing?

While some business owners are reluctant to add liabilities to their balance sheet, others want to avoid tying up their own resources. Customers may not realize that financing is available.

HBC’s Brown urges trade allies to contact them early in the process and to pair a lighting proposal with a financing option so customers can make an informed decision. “We’re here to make life easier for the utility, the contractor and the customer,” said Brown.