Energy project finance reference. This educational resource covers project investment and financing concepts. It is separate from Jaken Energy’s commercial electricity and natural gas procurement service; it is not a financing offer or a promise of funding.
Construction financing and completion risk
Construction financing funds an asset before it generates stable operating revenue. The financing process needs evidence that the remaining budget and commitments can deliver a usable project. A term loan assumption should not conceal the construction risks.
What to evaluate
Review scope, engineering, procurement, contractor credit, draw certification, contingency and completion tests. Identify who covers overruns and whether performance or delay remedies are collectible. Equipment delivery does not equal commercial operation.
Build a defensible comparison
The conversion to permanent financing may require permits, commissioning results, interconnection, offtake commencement and other conditions. Model interest during delays and the ability to fund an overrun. A milestone plan should match technical completion with lender requirements.
Documents and questions to prepare
- Remaining cost-to-complete budget
- Contractor and equipment interfaces
- Draw certification and contingency
- Commissioning and permanent-finance conditions
For commercial property owners
Start with the property’s actual accounts, lease responsibilities and plans for ownership or sale. Keep commodity procurement, building improvements and project investment as separate decisions. Include the costs you retain and the savings you retain after tenant reimbursement. An improvement that lowers a tenant-paid expense may benefit tenants without producing the same increase in owner income.
Prepare a base case and a downside case using dated evidence for costs, revenue and funding. Any financing rate, tax benefit or return is a project assumption until supported by current documents. Legal, tax, engineering and lender review should follow the actual transaction.
For the existing property’s supply-cost decision, use the contract-cost calculator or request a property energy review.
Primary sources
Reviewed October 12, 2026. Program rules, tariffs and financing terms should be checked again before a transaction.