EEFIG Underwriting Toolkit

The Underwriting Toolkit provides information aimed specifically at the different units and individuals within financial institutions whose task is to evaluate, assess, approve and process energy efficiency transactions. Underwriting, the process of evaluating value and risks prior to making a decision to deploy capital, indeed requires specialist knowledge of the asset class being considered for investment and finance. But building knowledge and capability of underwriting energy efficiency is at an early stage in many financial institutions. This guide is therefore a first attempt to develop a standardised approach, discuss the issue of performance risk, critical as a greater understanding of performance risk will allow it to be managed and priced appropriately. Another challenge in making energy efficiency a normal part of day-to-day activity for financial institutions is the gulf in language and understanding between the financial industry and the primarily technically led energy efficiency industry. This guide also aims to start to provide a common language, which can be used by both sides.