TAF Launches new Multi-unit Residential Energy Retrofit Financing Product

At this point, it has been conclusively demonstrated that there is enormous potential for improving the energy performance of Toronto’s Multi Unit Residential Buildings (MURBs). Case studies undertaken by TAFs TowerWise program have documented examples of buildings reducing energy use and GHG emissions by over 25% with paybacks in the 3-5 year range. And the City’s Tower Renewal Project has undertaken feasibility studies showing the potential for 70% improvements in energy performance with paybacks in the 8-10 year range.

So what is standing in the way of getting it done? The barriers are many, but our research indicates that access to financing which meets sector specific needs is the key to unlocking investment in MURB energy upgrades.

That’s why the TAF has developed and is now offering the TowerWise Energy Savings Purchase Agreement for MURB energy retrofits in the City of Toronto. TAF will pre-purchase the projected energy savings from the project, providing the funds to purchase and install the equipment. Financing is repaid by assigning TAF 75% of the energy savings over the financing term. There is no loan and no need to place a lien on the property. Key benefits include:

• 100% Financing, designed to be cash-flow positive from day one
• Payments pro-rated to verified energy savings (if systems underperform, clients pay less)
• Unlike a loan, there is no lien on the property
• System commissioning and re-commissioning provided to ensure that new equipment is installed and operating correctly
• Partnership with a trusted not-for-profit municipal agency
• Once TAF has recovered its investment all cash flow belongs to client

What’ s the catch? Well there’s definitely some fine print – but no catch – risk free – but not free! If you know of a project that might be a good fit for this structure, contact tstoate@tafund.org.