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.
Energy project insurance and retained risk
Insurance transfers specified risks subject to terms, exclusions and limits. It does not cover every reason a project can lose value. Development, construction and operation may need different policies and coverage periods.
What to evaluate
Review property damage, equipment breakdown, liability, construction delay and business interruption where applicable. Coordinate lender requirements and loss-payee arrangements with the ownership and financing structure. Confirm the valuation basis and waiting periods.
Build a defensible comparison
Check deductibles, sublimits, exclusions, insurer credit and renewal terms. Model the cash effect of an uninsured loss or a claim delay. Coverage assumptions should be tied to an actual policy or quotation, not a generic percentage of capital cost.
Documents and questions to prepare
- Phase-specific coverage and limits
- Deductibles, exclusions and waiting periods
- Lender and ownership requirements
- Claims liquidity and renewal plan
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.