According to McKinsey & Company, soft costs
and balance of hardware can add upwards of 60% to total system costs, often making energy storage installation too expensive to deploy.
The lease option can cover the entire cost of the equipment and also the soft costs
such as carriage and taxes.
I am certain that our competitive advantages, such as taking only the equipment as a collateral, and covering all the acquisition soft costs
, (sales taxes, shipping, installation, and training), will benefit DAES's customers."
SHARE President Marcelino Mendoza said "Non-Government Organizations and small housing developers are most affected in their delivery of housing production as they operate with very thin margins and cannot afford these soft costs
associated with long project cycles and resulting cost overruns.
In that $1.00 goes on soft costs
such as design, permitting, inspections and sales commission.
In addition to cost over-runs, soft costs
also balloon up in the shape of commitment charges that must be paid to lenders.
Including soft costs
, the food court projects overall budget now stands at $17 million, up from $14.5 million.
The price drop reflects decreased manufacturing and equipment costs, as well as lower soft costs
and improved installation delivery--all indicators of a maturing market.
The company said the sale and leaseback transaction, comprised of production equipment and soft costs
, was vital for Mazuma's customer.
The soft costs
for a new hire to perform relocation research and task can be overwhelming.
These initial investment requirements, or so-called "soft costs
," can increase quickly and are not readily recoverable.