Business Development PDF Print E-mail

CHP sales require internal resources to create the tools required by the Sales Department: Economic Pro forma Spread Sheets, Finance (banking relations), Rental Programs and Subsidy Assistance.

 

Economic Pro forma Spread Sheets are developed to facilitate the Initial Audit: Preon has developed spread sheet for analyzing 8 different scenarios:

 

Top Cycling Pro Forma Spread Sheets

  1. Chiller CHP Upgrade – Utility Inputs
  2. Chiller CHP Upgrade – Energy Projections
  3. New CHP Plant – Utility Inputs
  4. New CHP Plant – Energy Projections

 

Bottom Cycling Pro Forma Spread Sheets

  1. Chiller CHP Upgrade – Utility Inputs
  2. Chiller CHP Upgrade – Energy Projections
  3. New CHP Plant – Utility Inputs
  4. New CHP Plant – Energy Projections

 

The Initial Audit will indicate the economic performance of a cash purchase: IRR, NPV and payback. A 5 or 10 year cash flow analysis will be provided for both a cash purchase and energy-savings lease.

 

Finance: Preon will assist in the implementation and finance of all 4 types of CHP plant utilization platforms:

  • Power Purchase Agreement
  • Cash Purchase – Internal End User Loan
  • Energy Savings Lease
  • Performance Contract

 

Rentals: the remote gas industry sometimes demands the utilization of “rentals” versus the purchase of generators. Through its financial banking relations, Preon’s Business Development has established simple monthly “Rental Agreements” to facilitate this very important segment of the market: Preon Sales in all offices has access to this important initiative.

 

Subsidy Assistance: The American Recovery Act (Federal Stimulus Bill) allocates funds to finance 10% of the CHP plant or up to 30% if renewable gas is used. Various Federal Governmental Agencies such as DOE and USDA will have solicitations targeted at different technology platforms. Furthermore, each State will offer certain grants, subsidies and/or credits depending on their budgets and public solicitations. Regional Utility Agencies such as NYSERDA and ICAP will provide lump sum or annual financial incentives. Once Preon is under contract to provide a turnkey CHP solution, Preon will assist in petitioning with any and all contributing agencies to sequester the maximum amount of funds.