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Financing Options for Onsite Generation, Energy Storage, and Energy Efficiency Projects

Across sectors, commercial and industrial facilities are benefiting from the implementation of renewable energy generation, storage, and energy efficiency projects. Despite the potential for these projects to reduce onsite energy consumption, build resiliency, and lower operational costs in the long term, the initial expenses are often high. However, there are a growing number of financing mechanisms that can be leveraged. When deployed strategically, these mechanisms can give organizations the financial tools to install projects that accomplish their energy goals. In 6 steps, this resource introduces organizations to a general process to contextualize the many different financing options, ultimately facilitating an informed selection of financing mechanisms. Step 1 discusses the importance of establishing clear organizational preferences. Step 2 briefly introduces common financing options and Steps 3 and 4 provide guidance for selecting mechanisms based on locational availability and organizational preferences. Finally, Steps 5 and 6 show how mechanisms can be combined with incentives and provide preliminary guidance for selecting and engaging with external partners. While this document provides a general approach to selecting a financing mechanism for renewable energy generation, storage, and/or energy efficiency, it does not contain tax and/or legal advice. A tax advisor should be consulted before taking any action.

25 ENERGY STORAGE

Power now, pay later: the evolution of U.S. residential solar financing

Most U.S. residential rooftop solar customers finance their solar purchases through loans or by buying power from third-party owned systems. Prior research demonstrates how third-party ownership (TPO) models such as leases emerged in the early 2010s and accelerated solar adoption by low- and moderate-income households while driving market concentration in the installation industry. Since 2015, loans have emerged as a prevalent financing alternative, but the potential effects of loans on the customer base and industry remain understudied. Here, we fill that research gap by developing a methodology to identify loan-financed and third-party owned systems in a household-level solar adopter data set. The data suggest that loans accounted for increasing solar market shares from 2017 until reaching as high as 70% in 2022, but that the market has since shifted back to TPO. The data show that TPO adopters in our sample earned about 16%–18% less and loan recipients earned 3%–7% less, at the median, than customers who self-financed systems. These results reaffirm prior research showing that TPO has accelerated low- and moderate-income adoption and that loans have likewise expanded the customer base to a lesser extent. The results suggest that loan-financed systems entail around a 16%–26% price premium that is only partly explained by loan fees. Finally, the data suggest that the emergence of loans has likely reduced market concentration in the rooftop solar industry.

financing

Financing Storage as a Transmission Asset: Initial Considerations for an Emerging Use Case

Deploying energy storage as an electric transmission system asset is a unique use case that, despite a body of policy and regulatory support, has received little attention or investment in the United States. The benefits of using storage on the transmission system—and the remaining barriers to that use—have been explored elsewhere. This paper complements that body of research by exploring the finance implications of using energy storage as a transmission asset (SATA). Because transmission infrastructure in the U.S. is generally subject to rate-of-return regulation, in which asset owners receive both a return of their invested capital and a return on that capital, storage assets deployed for that use are not subject to market volatility and have a much lower risk profile overall. That lower risk profile would, in theory, correspond to lower interest rates and other more favorable financing terms relative to a storage project deployed in a market setting. This paper draws from corollaries in other markets to estimate the expected finance impacts of SATA projects.

24 POWER TRANSMISSION AND DISTRIBUTION

Energy Finance Training [Slides]

The Energy 101: Energy Financing Training presentation, developed for the Energy Technology Innovation Partnership Project (ETIPP), provides an overview of energy project financing. It covers fundamental concepts, technologies, considerations, case studies, and additional resources.

24 POWER TRANSMISSION AND DISTRIBUTION

Strategies for Successful Energy Project Financing [Slides]

The Energy to Communities (E2C) peer-learning cohort program provides technical assistance to groups of 15 community entities around a common energy topic over the course of 6 months. Every month, participants join a virtual meeting where they hear from experts and exchange strategies and best practices with their peers.This cohort, "Successful Energy Project Implementation" will explore common challenges in implementing energy projects and learn strategies to turn project plans into reality. Each participant will focus on a local energy project or priority as a cornerstone for their learning throughout the series. This presentation focuses on strategies for successful project financing. This workshop is on April 29, 2026.

29 ENERGY PLANNING, POLICY, AND ECONOMY

A Recipe for ABC Multifamily Retrofits: Technologies, Financing, and Project Delivery

This report documents the final technical accomplishments and outcomes of Rocky Mountain Institute’s project under the U.S. Department of Energy (DOE) Award DE-EE0009064. The project aimed to develop, validate, and scale whole building retrofit solutions for multifamily buildings, including two configurations of Integrated Mechanical System Pods (IMSP-C and IMSP-U), in alignment with DOE Advanced Building Construction (ABC) initiative's decarbonization and energy efficiency goals. While the project made significant progress in Budget Period 1 (Phase 1) and throughout Budget Period 2 (Phase 2), activities were discontinued as of March 26, 2025, following a Stop Work Order issued by DOE. As such, this report reflects all completed work through that date. The project did not enter Budget Periods 3 and 4 (Phase 2), and demonstration site implementation, field M&V, and final commercialization execution were not conducted.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Entropy-Assisted Quality Pattern Identification in Finance

Short-term patterns in financial time series form the cornerstone of many algorithmic trading strategies, yet extracting these patterns reliably from noisy market data remains a formidable challenge. In this paper, we propose an entropy-assisted framework for identifying high-quality, non-overlapping patterns that exhibit consistent behavior over time. We ground our approach in the premise that historical patterns, when accurately clustered and pruned, can yield substantial predictive power for short-term price movements. To achieve this, we incorporate an entropy-based measure as a proxy for information gain: patterns that lead to high one-sided movements in historical data yet retain low local entropy are more “informative” in signaling future market direction. Compared to conventional clustering techniques such as K-means and Gaussian Mixture Models (GMMs), which often yield biased or unbalanced groupings, our approach emphasizes balance over a forced visual boundary, ensuring that quality patterns are not lost due to over-segmentation. By emphasizing both predictive purity (low local entropy) and historical profitability, our method achieves a balanced representation of Buy and Sell patterns, making it better suited for short-term algorithmic trading strategies. This paper offers an in-depth illustration of our entropy-assisted framework through two case studies on Gold vs. USD and GBPUSD. While these examples demonstrate the method’s potential for extracting high-quality patterns, they do not constitute an exhaustive survey of all possible asset classes.

Physics

Feasibility and strategic implications of deploying nuclear power reactors in Africa

This report assesses the feasibility and strategic implications of deploying nuclear power reactors, including large-scale plants, advanced small modular reactors (SMRs), and microreactors, in African countries. Case studies focus on South Africa, Egypt, Kenya, Ghana, and Nigeria, examining nuclear energy’s role in Africa’s rapidly evolving energy landscape, marked by fast-growing demand, significant electricity access gaps, increasing renewable penetration, and strong policy commitments to industrialization and energy security. Several U.S. reactor technologies and designs are considered based on their development status and readiness for deployment. The analysis finds that nuclear power can provide reliable, clean baseload and flexible generation, as well as high-temperature process heat for desalination, hydrogen production, and industrial applications. However, suitability is highly country-specific, depending on grid size and stability, transmission capacity, cooling water availability, regulatory readiness, and fuel supply chains. Near-term deployment opportunities are strongest for light-water reactors (such as NuScale, BWRX-300, AP300, and SMR-300) that use low-enriched uranium and build on proven technology. More advanced concepts, including gas-cooled, sodium-cooled, molten-salt cooled reactors, and microreactors, will likely be relevant for African deployment in the 2030s or later, contingent on demonstration projects, high-assay low-enriched uranium (HALEU) fuel availability, and mature international licensing frameworks. Economic analysis shows that SMRs are capital-intensive, with projected overnight costs for 300 MWe units in 2025 ranging from approximately 1.4 to 2.6 billion USD per module. The levelized cost of electricity (LCOE) is highly sensitive to the weighted average cost of capital (WACC). Given typically higher financing costs and utility balance-sheet weaknesses in many African countries, bankable project structures will require sovereign guarantees, robust offtake arrangements, and layered financing from export credit agencies, development finance institutions, and vendor nations. Comparisons with recent large nuclear projects in the United Arab Emirates (UAE) and Egypt underscore the central role of state-backed loans, long tenors, and concessional terms. Country case studies illustrate a spectrum of readiness and opportunity. South Africa operates two 920 MWe pressurized light water reactors (totaling 1,840 MWe) at Koeberg and has the most mature regulatory and industrial base, positioning it as a prime candidate for both large reactors and SMRs to replace coal, support desalination, and anchor industrial hubs. Egypt is constructing four VVER-1200 units at El Dabaa with strong state leadership and could later complement this fleet with SMRs for coastal and industrial applications. Kenya and Ghana are advancing through IAEA Milestones with growing institutional capacity and clear interest in SMRs that match their smaller grids and industrialization plans. Nigeria has the largest demand potential but faces acute constraints in grid reliability, project bankability, and regulatory capacity; targeted deployments of large reactors and SMRs near coastal or industrial sites could have high impact if accompanied by major grid upgrades and institutional reforms. The report identifies cross-cutting challenges such as financing, political continuity, public acceptance, nonproliferation and security, waste and back-end management, regulatory capacity, grid adequacy, and long deployment timelines for first-of-a-kind designs, and ANL/NSE-26/3 ii proposes broad directions for resolution. These include stronger multifaceted financing for nuclear, long-term national energy strategies that transcend electoral cycles, proactive stakeholder engagement, strengthened regional and national regulators, and systematic workforce development through centers of excellence and expanded training. The United States should develop partnerships with African countries and offer end-to-end nuclear package similar to those used effectively by competitors: coordinated project development, state-backed financing, long-term fuel services, and durable in-country support through regional offices and sustained workforce/regulatory training. With timely planning, sustained political commitment, and appropriate financing and institutional support, nuclear energy, both large reactors and advanced SMRs, can become a meaningful, though not dominant, pillar of Africa’s future power mix, enhancing energy security, enabling industrial growth, and supporting climate goals.

22 GENERAL STUDIES OF NUCLEAR REACTORS

Clean Energy Revolving Loan Funds: International Experience [Slides]

Tunisia’s Energy Transition Fund (FTE), created in 2013, was established to promote energy efficiency and renewable energy projects in the public and private sectors. To overcome financing challenges related to the energy transition, Tunisia’s National Agency for Energy Conservation (ANME) seeks both to strengthen available financial resources and to develop innovative financing structures. Revolving Loan Funds (RLFs) are one such innovative financing structure, used by countries around the world to foster the development of distributed clean energy projects. This report aims to inform policy makers and various stakeholders on the opportunity to design an RLF by drawing on successful experiences from other countries. Specifically, this report provides analytical support for discussions with ANME and its partners to develop an RLF in the context of Tunisia. It outlines the 12 essential steps for establishing a RLF and includes detailed case studies demonstrating successful RLF implementation across various contexts.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Coalition for Community-Supported Affordable Geothermal Energy Systems (C2SAGES)

The C2SAGES project evaluated the feasibility of a community geothermal system for the planned Windy Ridge affordable housing development in Hinesburg, Vermont. Led by GTI Energy with Vermont Gas Systems, LN Consulting, NREL, and Frontier Energy, the work assessed technical design, energy performance, costs, business models, community engagement, maintenance, workforce development, and permitting. The proposed system was designed to serve 100% of the development’s heating, cooling, and domestic hot water loads. Compared with a baseline using air-source heat pumps and natural gas water heating, the geothermal system was estimated to reduce HVAC and domestic hot water energy use by about 45% to 48%, lower operating and maintenance costs, and reduce 30-year life-cycle costs by 37% for Phase 1 and 10% for Phase 2. Technical testing and modeling indicated that the Windy Ridge site is suitable for a community-scale geothermal system. The project also developed borehole field layouts, piping concepts, pump house designs, controls, maintenance plans, and supporting engineering drawings. The business model analysis found that first cost, ownership structure, and customer affordability remain major deployment challenges. Utility-led maintenance and operation were viewed favorably, but traditional utility cost-recovery models may require subsidy or revised financing structures to be practical for affordable housing. Community engagement highlighted the need for clear public education, transparent financing, reliable long-term maintenance, trained technicians, and the potential to pair geothermal systems with weatherization. Overall, the report concludes that community geothermal is technically feasible and offers meaningful energy, emissions, and life-cycle cost benefits, but broader deployment will depend on workable financing models and workforce readiness.

15 GEOTHERMAL ENERGY

Roadmap to reach global net-zero emissions for developing regions by 2085

As climate change intensifies, determining a developing region’s role in achieving net-zero emissions worldwide is crucial. However, regional efforts, considering historical emissions, remain underexplored. Here, we assess energy system changes, technology adoption, and investments needed for developing regions, including five major- and minor-emitting nations. Our analysis, using an integrated assessment model, shows a large gap in regional efforts toward global net-zero emissions, stemming from the necessary shift of energy systems to low-carbon resources. The use of new technologies, like electric vehicles, hydrogen, and carbon capture, varies by region, with the highest adoption required between 2020 and 2030. Financing this shift needs an average gross domestic product (GDP) investment rise of 0.464% in minor-emitting regions and up to 2.1% in major-emitting regions by 2085. Our results could guide policies and support setting quantifiable targets for developing nations. The findings are key to facilitating strategic technology use and finance mobilization to achieve a carbon-neutral future.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Performance Assurance Planning Guide for Utility Energy Service Contracts: 2025 Edition

Administered by the U.S. Department of Energy's (DOE) Federal Energy Management Program (FEMP), the Utility Program has fostered collaboration among federal agencies and their serving utilities for more than 25 years. The Utility Program supports agencies using Utility Energy Service Contracts (UESCs), a well-developed, effective contracting vehicle that enable the latest approaches to cost-effective energy management at federal sites. Federal agencies have successfully used UESCs to award over 2,000 energy and water efficiency and renewable energy projects, investing approximately $\$$2.8 billion in furthering the Federal Government's efforts to reduce energy intensity. Authorized by 42 U.S. Code section 8256 (10 U.S. Code section 2913 for the Department of Defense), a UESC is a limited-source acquisition between a federal agency and an eligible serving utility for energy management services that generate savings from the implementation of energy- and water -conservation measures (collectively referred to as ECMs), with 42 U.S. Code section 8287 (Defense Federal Acquisition Regulation Supplement, Part 241), providing the term of a UESC, which may extend up to 25 years. Through a UESC, the utility partner assesses designs, and implements the desired ECMs - which can range from lighting retrofits and renewable energy systems, to combined heat and power plants or other technologies and strategies, and may provide financing for the project. The agency may use any combination of appropriations and third-party financing to pay for the project, providing useful flexibility. There is no limit to the project size, big or small, that can be implemented using a UESC. To assist agencies implementing a UESC, FEMP has developed a Utility Energy Service Contract Guide and this companion guidance document to help agencies and their utility partners better understand the best practices for to ensure UESCs continue to perform and generate savings throughout their performance period. These best practices utilize a combination of effective project management, communication, documentation, and a detailed Performance Assurance Plan. This plan is a project specific set of actionable protocols that define important tasks and responsibilities throughout the contract term and reflects the site conditions, complexities, agency capabilities, and operating and maintaining planned ECMs.

29 ENERGY PLANNING, POLICY, AND ECONOMY

From Concept to Capital: How Developers Secure Private Investment

With an increased need for funding diversity in hydropower, private capital is becoming more important than ever. Investors are actively seeking opportunities, but what makes a project attractive for investment, and how can companies secure private equity or venture capital backing? This session brings together experts to discuss what capital providers look for in providing financing for hydropower projects. Panelists will explore key barriers - such as the lack of diversified portfolios and long-term revenue certainty - and strategies to overcome them through innovative financing mechanisms, partnerships, and market-driven solutions.

16 TIDAL AND WAVE POWER

Microgrid Handbook for Army Resilience: A Technical Review

The Army recognizes the need for its installations to operate as independently and efficiently as possible with secure energy and water resource that cannot be limited or shut off by external forces or events, whether natural or man-made . In an effort to make this possible, the Army has identified microgrids as an effective way to achieve the goal of secure power for operations, both for domestic and international installations. This document is designed to educate Army Installation leaders about what microgrids are, options for their components, financing, and operations, as well as other regulatory and technological considerations.

24 POWER TRANSMISSION AND DISTRIBUTION

A Systems-Level Approach to Address Risks and Ethics in Artificial Intelligence Systems

Artificial intelligence (AI) is rapidly changing the world, from completely controlling routine or mundane tasks like text and image generation, to powering advanced algorithms that control critical systems. The recent advances in generative AI quickly overwhelmed multiple industries from education to finance as first adopters rushed (and continue to rush) to take advantage of the technology. The expanding AI ecosystem presents novel risks and ethical challenges that must be handled to ensure that technology is leveraged fairly and ethically. There are intertwined risks and ethical challenges stemming from the stochastic nature of AI (i.e., intrinsic risks), as well as from specific applications (i.e., extrinsic risks). Appropriately regulating AI requires a systems-approach to develop an integrated solution to these dependent challenges. Thus far, however, questions of risk, ethics and regulation appear to occupy separate spaces. This paper reviews the risks and ethical implications of AI and proposes a system-level approach to integrating ethics and regulation for the nascent industry.

22 - GENERAL STUDIES OF NUCLEAR REACTORS

Analysis of the Financial Impacts of Building Performance Standard Penalties on Commercial Buildings in Aurora, Colorado

Buildings are responsible for 30% of total energy consumption worldwide. To address building energy, jurisdictions in the USA have enacted Building Performance Standards (BPS) legislation. The objective of BPS is to reduce energy consumption in buildings, thereby reducing the energy burden on utility infrastructure and other externalities. This is accomplished by setting mandatory energy use limits coupled with penalties for exceeding those limits. One of the key questions in BPS policymaking is how these penalties might impact the finances of building owners and tenants. This paper presents an analysis of BPS penalties in Aurora, Colorado, specifically targeting buildings impacted by the adopted statewide BPS legislation. Several BPS penalty structures were applied to the affected building stock in Aurora, and the potential impacts on building owner returns and tenant rents were estimated. The results show that for some combinations of building types and penalty structures, potential rent increases due to penalties could match or exceed typical yearly rent increases. The results also show that in most cases, for Aurora, there was no statistically significant difference in impact between buildings located in under-resourced and well-resourced areas.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI

Deep learning for time series forecasting: a survey of recent advances

Time series forecasting plays a critical role in numerous real-world applications, such as finance, healthcare, transportation, and scientific computing. In recent years, deep learning has become a powerful tool for modeling complex temporal patterns and improving forecasting accuracy. This survey provides an overview of recent deep learning approaches for time series forecasting, involving various architectures including RNNs, CNNs, GNNs, transformers, large language models, MLP-based models, and diffusion models. We first identify key challenges in the field, such as temporal dependency, efficiency, and cross-variable dependency, which drive the development of forecasting techniques. Then, the general advantages and limitations of each architecture are discussed to contextualize their adaptation in time series forecasting. Furthermore, we highlight promising design trends like multi-scale modeling, decomposition, and frequency-domain techniques, which are shaping the future of the field. This paper serves as a compact reference for researchers and practitioners seeking to understand the current landscape and future trajectory of deep learning in time series forecasting.

97 MATHEMATICS AND COMPUTING