Contracting
Why Contracting?
- The building owner and later buyer will readily decide for a more cost-effective option due to solvency.
- Of course it is always better to buy a system provided that sufficient funds are available
- Should this not be the case shares from investment will be leased, financed or a contracting contract signed.
Advantages of Contracting
- Investment costs: Through contracting, each system can be fully financed. With the payment of a contribution towards building costs, the monthly costs can be decreased for the future owners or renters.
- Length of contract: The heat supply contract runs for a period of 20 years. This is annually terminable with consideration to the redemption value. (loan-comparison calculation forms a part of the contract).
- System operation: A good start is the installation of a heat pump system. The system always needs to be monitored to ensure the benefit, for example, of maintaining the efficiency at a minimum of 4.0. For the owner there is simply a contact person who delivers the heat, attends to the system and, where required, exchanges a module on his bill.
- A re-charge of the service rate (system re-financing) to the renter is possible for the vendor with contracting. This form of re-charging is only possible through contracting (commercial heat supply)
>> Ilustrative example - A Hotel
What is contracting?
Contracting is a method of financing the whole cost of the geothermal system without any large initial financial outlay. Monthly payments paid by the property owner/tennant are based on the amount of energy used from the new system and should be no higher than the cost of the oil/gas system previously utilised. This energy is sold over a maximum of 20 years at a fixed contract price and therefore holds the advantage over gas or oil where the price will likely rise over time. During the contract period the system remains the property of the contractor who services, maintains and where necessary repairs the system at the contractor’s own cost. After contract termination, the whole system becomes the property of the house owner.
