By being off-balance sheet, project financing requires no capital investment by the customer. Under this option the energy service provider monitors and verifies savings. This option is lower-risk financially because customer payments are based on the delivered performance results. Project financing offers several benefits to the customer. These benefits include lower operating costs and capital cost avoidance.
Project financing gives customers the ability to focus on their core business.
Project financing is not without its disadvantages, however. These include the possibility of higher implicit costs. Also, project financing is typically longer in term than lease financing. Constellation Energy Source Constellation Energy Source is a member of the Constellation Energy Group and an affiliate of the Baltimore Gas and Electric Company, a wholesale and retail energy marketer witth sales offices in Maryland, Washington, D.C., Pennsylvania, Virginia, Ohio and New Jersey. EMI is accredited through the National Association of Energy Service Companies, which recognizes EMI as a full-service provider of comprehensive energy efficiency projects.