Financing Distributed Generation: Preprint

    Research output: Contribution to conferencePaper


    This paper introduces the engineer who is undertaking distributed generation projects to a wide range of financing options. Distributed generation systems (such as internal combustion engines, small gas turbines, fuel cells and photovoltaics) all require an initial investment, which is recovered over time through revenues or savings. An understanding of the cost of capital and financingstructures helps the engineer develop realistic expectations and not be offended by the common requirements of financing organizations. This paper discusses several mechanisms for financing distributed generation projects: appropriations; debt (commercial bank loan); mortgage; home equity loan; limited partnership; vendor financing; general obligation bond; revenue bond; lease; Energy SavingsPerformance Contract; utility programs; chauffage (end-use purchase); and grants. The paper also discusses financial strategies for businesses focusing on distributed generation: venture capital; informal investors ('business angels'); bank and debt financing; and the stock market.
    Original languageAmerican English
    Number of pages15
    StatePublished - 2001
    EventTo be Association of Energy Engineers Annual Conference - Atlanta, Georgia
    Duration: 24 Oct 200126 Oct 2001


    ConferenceTo be Association of Energy Engineers Annual Conference
    CityAtlanta, Georgia

    Bibliographical note

    To be presented at the Association of Energy Engineers Annual Conference, 24-26 October 2001, Atlanta, Georgia

    NREL Publication Number

    • NREL/CP-710-30554


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