The GoSafe with ESI solution offers a win-win situation for both Technology Providers and Firms, where through the increased credibility among partners, it generates more business and savings respectively for both stakeholders. For the full list of benefits, please visit the benefits page.
The ESI model includes financial and non-financial elements designed to work together to reduce the risk for firms to invest in energy efficiency and create trust and credibility among key actors. The model consists of 5 main components: (i) Standardized Contract, (ii) Validation, (iii) Energy Savings Insurance, (iv) Financing, (v) Online Platform. For more information on how it works, please see our simple step by step guide.
If you want to incorporate the GoSafe with ESI solution into your project, please contact us here.
In the GoSafe with ESI solution the surety bond offered by the insurance company is a key element of the model.
Bonds and guarantees are normally required under the terms of a construction or engineering contract, or in accordance with mandatory legal requirements, to secure the obligations of the principal debtor/contractor (generally known as the principal) against the beneficiary/client.
They guarantee the performance of a variety of obligations, from services or construction contracts to commercial undertakings. Almost any sale, service or compliance agreement can be secured by a surety bond.
A surety bond is an agreement, issued by an insurance company, which (in most cases) provides for monetary compensation in case the principal fails to perform.
The surety product would cover the contractor’s commitment to their clients when it comes to the energy efficient savings of their project. We have seen in other countries were this model is operative, that the surety product is a better fit than bank guarantees for the business model we are proposing.
The credit guarantee that is offered by a typical bank, would freeze credit and might add administrative fees to the product offered. Therefore, the credit guarantee would be less attractive for the TP to engage in the model. On the other hand, the surety is a very simple insurance product in the form of the guarantee, but that does not lower the financial liquidity of the TP since it ‘freezes’ only its capital. This way the TP would not be facing the constrains of having to deal with less liquidity in its business. The surety product would serve primarily to increase the trust of the client that is investing in EE projects.
The client of the surety bond is the Contractor (technology provider), who offers the project to their clients with certain guarantees. The contractor’s client (a business, typically an SME) is the beneficiary of the bond.
It is a B2B solution. It is a program funded by the European Commission H2020 where we are aiming to involve an insurance company that is interested to adopt this business model and extend their existing surety product to energy efficiency projects.