BRIGHTON, MI--(Marketwired - Aug 7, 2015) - CGE Energy (OTC PINK: MKBY) is a leading engineer of no capital cost energy solutions. Depending on the specific needs of their customers, CGE Energy utilizes many financial mechanisms to make sustainable energy a financially smart decision. The company encourages a prudent examination of the available financial structures for an organization to best choose from.
A federally backed loan program known as PACE (Property Assessed Clean Energy) has become a popular financing method over the past few years. The program attaches the cost of an energy improvement to a building owner's property tax roll for up to 20 years. CGE Energy is a certified contractor for Michigan PACE, but they have been developing their own financing solution to fill the gaps that PACE does not address.
"PACE opens doors for energy projects that wouldn't have happened otherwise, but it still requires positive cash flow each year of the loan. The only way to achieve this is a long-term lien at 7-8% interest, which significantly reduces the energy savings experienced," said Bryan Zaplitny, President/CEO of CGE Energy. "They might not have cash out of pocket, but it may not be the wisest way to get an energy improvement done."
CGE Energy's innovative CGE Sustain program allows the customer to implement energy efficiency and renewable energy upgrades with immediate positive cash flow and no capital expenditure. The program comes in the form of a service contract, with CGE Energy's all-inclusive maintenance service acting as an important part of the solution. "The items missing from PACE financing are addressed in our CGE Sustain program, especially the long-term maintenance and operation aspect of an energy project," said Zaplitny.
Since PACE is repaid through property tax payments, organizations that are not required to pay property taxes cannot utilize the PACE financing method. Zaplitny elaborates, "PACE is a great program, but it's not available for schools, municipalities, churches and many non-profits. This leaves a large number of organizations without a good solution to meet their energy needs -- and these very well could be the organizations that need it most."
The CGE Sustain program is 100% off balance sheet and is fully funded by CGE Energy. "While there is still no consensus on whether PACE can be considered off balance sheet, the liability is still evident," says Gary Westerholm, VP of Finance for CGE Energy. "We have already utilized our CGE Sustain program to make energy projects possible for facilities within the REIT (real estate investment trust), property management and charter school markets."
To learn more about the CGE Sustain program, visit http://www.cgeenergy.com/sustain
About CGE Energy
CGE Energy is the leading engineer of no capital cost energy solutions. Headquartered in Brighton, Michigan, the company integrates the optimal configuration of renewable energy and energy efficiency technologies to meet their customers unique energy needs. Today the company serves customers in the U.S. and abroad, using energy technologies that include Cree® LED lighting, their patented WIND•e20® wind turbine and SolarWorld® solar generation. CGE Energy is now a publicly traded company and will trade under the ticker symbol (OTC PINK: MKBY) until FINRA approval of symbol change. http://www.cgeenergy.com
Certain statements made in this release constitute forward-looking statements and do not guarantee future performance. Actual results or developments may differ materially from the projections in the forward-looking statements.