A Building Owner's Guide to Commercial Energy Financing
Replacing aging HVAC equipment. Upgrading outdated lighting. Improving building controls. Resolving plumbing issues. For many commercial building owners, these projects aren’t a matter of if— they’re a matter of when.
Even when improvements are entirely necessary, one question tends to slow the decision-making process:
How are we going to pay for it?
The National Energy Improvement Fund (NEIF) works with businesses, nonprofits, multifamily properties, and other organizations to help make energy improvements more accessible through low monthly payment financing. Whether you’re anticipating future upgrades or responding to immediate needs, understanding your options can be a helpful first step toward making informed decisions about your building.
This guide walks building owners through the basics of commercial energy financing— what it is, how it works through NEIF, and the things owners should consider before starting a new project.
Why Do Building Owners Choose Financing?
Financing isn’t just a solution for when funds are limited. For many building owners, financing serves as a powerful tool that can help preserve working capital, accelerate business growth, and even increase process efficiency and productivity.
Lower upfront costs for equipment and efficiency upgrades can free up other capital for day-to-day operations, unexpected expenses, or investments in growth and other opportunities.
How Does the Process Work?
While each project is different, NEIF’s commercial financing process follows the same general path.
- Identify the Need
Is your HVAC nearing the end of its lifespan? Are lighting fixtures due for an upgrade? Perhaps building occupants have begun to raise concerns about comfort. Whatever issue needs to be addressed, identifying the need and defining some goals are a great place to start. - Connect with NEIF and Explore Options
Whether you’re in the early stages of planning or have already identified a NEIF-Approved Contractor to work with, the NEIF team is here to help you explore financing for eligible upgrades. - Complete the Financing Application
Building owners can apply for NEIF financing through one of two ways: 1) fill out the application directly at: https://commercial.neifund.org/apply, or 2) connect with your NEIF-Approved Contractor, who may have already customized a monthly payment proposal and initiated the application for you— allowing you to review, complete, and submit remaining information. - Receive Credit Approval & Sign Docs
Once your application has been submitted, you can typically expect to receive a credit decision within 3-5 business days. If approved, NEIF will generate and send closing documents for your signature. - Move Forward With Installation
Once closing documents have been signed and received by NEIF’s team, your contractor is notified that they may proceed with the project! - Begin Payments Once Project is Complete
Once your project is complete and you’ve confirmed that the work has been completed to your satisfaction, your first monthly payment will typically be due 30 days after project completion. Now you’re on your way to enjoying the benefits!
How Can I Set My Project Up for Success?
Before moving forward with a project, it’s worth taking a step back to evaluate your needs, priorities, and long-term goals. As you get started, consider the following:
- What challenge are we trying to address?
- How might delaying this project impact operations?
- Which financing solutions align with our needs?
- Are there incentives available to further offset the cost?
- How might this upgrade impact operating costs and efficiency over the long term?
From enhancing comfort to supporting long-term savings, investing in the efficiency of your building can deliver benefits well beyond the project itself. At NEIF, we’re committed to making the financing process as straightforward as possible— taking care of the details so you can focus on the rest: your business, occupants, and future success!
SOURCES: Bryan Construction, JP Morgan