On-Bill Recovery Loan
Step 1 – Identify Type of Improvement
Energy Efficiency Improvements
Organizations need a qualified energy assessment to apply for financing. Qualified energy assessments identify upgrades that can help reduce energy costs.
Small businesses and not-for-profits can get qualified energy assessments through NYSERDA'a FlexTech program, utility programs, or from qualified energy consultants. All energy assessments must meet NYSERDA’s qualified energy assessment standards [PDF].
Purchase and Installation of a PV
Once you have selected a PV contractor, the contractor will review your building for orientation and shading. He or she will then review with you the findings, and show you the project cost and any incentives that may be available. With your approval, the contractor will submit to NYSERDA a project application. If the application is approved by NYSERDA then the system may qualify for financing.
The PV system payback period, after accounting for all incentives, and state and federal tax credits, will ultimately determine which financing vehicle is applicable. If the payback period is 10 years or less, then the On-Bill Recovery Loan is available to finance your solar electric system.
Once your Project Application is approved, NYSERDA will send you a project eligibility letter and appropriate documentation, indicating which loan program your PV system is eligible for.
Go to Step 5.
Purchase and Installation of an Air Source and Ground Source Heat Pump
Your selected heat pump contractor will review your building’s heating and cooling loads and size a system to suit its needs. Your contractor will review the project with you, including the cost and any incentives that are available. If you agree, the contractor will submit to NYSERDA the NY Clean Heat application provided to the utility and a proforma showing the project cost and payback. For systems equal to or greater than 300,000 BTUs/hour, utility approval is also required.
The heat pump system payback period, after accounting for all incentives and state and federal tax credits, will ultimately determine which financing vehicle is applicable. If the payback period is 10 years or less, then the On-Bill Recovery Loan is available to finance your air source or ground source heat pump system.
Once your project application is approved, NYSERDA will send you a project eligibility letter and appropriate documentation, indicating which loan program your air or ground source heat pump system is eligible for.
Go to Step 5.
Step 2 – Select Upgrades
Before applying for an On-Bill Recovery loan, small businesses and not-for-profits need to:
- Decide which assessments recommendations to implement
- Identify any available NYSERDA or utility incentives
- Get contractor quotes on the cost of doing the work
Step 3 – Complete Request for Financing Package
To apply small businesses and not-for-profits must complete the Request for Financing Package which includes:
- The Request for Financing Form [PDF]
- The Approved Energy Efficiency Measures Worksheet [PDF]
- A copy of contractor quotes and technical cut sheets
- A copy of the qualified energy assessment
Step 4 – Submit Financing Package
Organizations send completed and signed Request for Financing Packages to NYSERDA by mail or email.
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By mail: |
By email: |
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Small Commercial Energy Efficiency Financing |
NYSERDA will notify the customer if the Request for Financing Package is approved or if additional information is required.
Organizations may choose to initiate project planning and development related to their energy efficiency project (e.g., design and specification, contract documents and bids, ordering equipment, scheduling work) prior to their loan closing. However, they do so at their own risk. Organizations may begin installation of their energy efficiency projects only after they close on the loan with their lender. Organizations that install any portion of their energy efficiency project prior to loan closing may be disqualified from the program.
Step 5 – Apply for Loan
If your project qualifies for, and you are interested in receiving an On-Bill Recovery Loan, contact Slipstream at [email protected].
The criteria below will be used to evaluate your loan request:
- All small business loans are to be personally guaranteed by the business owner(s) with a minimum 20% ownership.
- Guarantor minimum credit score of 660
- Guarantor debt-to-income Ratio of 50% or less
- Guarantor: no bankruptcy, foreclosure or repossession in the past 7 years
Experian’s Business Credit Report will be used to determine if the applicant meets the following criteria:
- Minimum 1 year in business
- Minimum Intelliscore Plus V3 credit score of 660
- Minimum Financial Stability Risk score of 660
- No Known Judgments or Tax Liens
- No Tradelines more than 30 days beyond terms 5
- No Bankruptcy in the last 7 years
*These criteria are subject to change.
Organizations that install any portion of their energy efficiency project prior to loan closing may be disqualified from the program.
Frequently Asked Questions
Closing Your On-Bill Recovery Loan
Once you close on your loan you may begin work. You will receive an interest only bridge loan from Slipstream, Inc., at the lender’s market rate, to fund the project. Once completed a Certificate of Completion, signed by both you and the contractor, is to be emailed to Slipstream, Inc. Within 7 days of notification by Slipstream, Inc. of receipt of the Certificate of Completion, NYSERDA will pay the lender the loan amount and your loan will be converted to an On-Bill Recovery loan.
When Will My Organization Need to Start Making Loan Payments?
NYSERDA reserves the right to make post-installation visits to ensure the qualified energy efficiency services have been installed consistent with the approved Request for Financing Package.
Will Someone Verify That the Project was Completed as Planned?
NYSERDA reserves the right to make post-installation visits to ensure the qualified energy efficiency services have been installed consistent with the approved Request for Financing Package.
Who Can My Organization Contact for More Information?
Questions about the program may be directed to 1-866-NYSERDA or by email to [email protected].