Energy Savings Agreement (ESA) Model Provides for Minimal Upfront Costs, High ROI, Participation with Tax Equity Partners
CleanSpark, Inc. (OTCQB: CLSK), a microgrid and custom electrical equipment company featuring advanced, proprietary engineering, software and controls for innovative distributed energy resource management systems, today announced it has secured $20m in financing to support various microgrid initiatives for commercial customers. This committed financing will help accelerate the development and deployment of CleanSpark’s Distributed Energy Resource (DER) Solutions to commercial customers.
Matthew Schultz, CleanSpark’s Chief Executive Officer, said: “This transformative financing sets into motion a game-changing industry model for bringing customized energy solutions to a rapidly growing number of commercial customers providing low upfront costs and provable savings.”
Our Energy Savings Agreement (ESA) financing model provides a host of different financing options and structures for our clients and investment partners to jointly pursue. Nowhere are the benefits and savings from these solutions more relevant than in the rapidly growing cannabis industry where both energy needs and the need to be intensely competitive are elevated. Given the backlog, we are witnessing and the level of interest we are confident in our ability to execute on a wide variety of projects and scale our industry-leading software platform.”
How do Energy Savings Agreements (ESAs) Work?
The SPE (Special Purpose Entity) Formed to own the System asset
SPE funded by CleanSpark (CLSK) and a Tax Equity Partner (TEP).
CLSK owns at least 51% of the SPE.
TEP funds the SPE at a premium due to their ability to rapidly harvest the tax benefit in year one.
Commercial customer spends $5,000 – $20,000 for a feasibility and engineering study.
The system outright and enjoys 100% of the energy savings.