Recessionary times have increased the height of the principal hurdle to energy retrofits — financing. A new book, How to Finance Energy Management Projects (390 pages, Fairmont Press, www.fairmontpress.com), is designed to help building owners consider all financing options that might be applied to their energy projects.
Authors Eric Woodroof, an energy consultant and a regular contributor to BUILDINGS, and Al Thumann, executive director of the Association of Energy Engineers, include chapters on ENERGY STAR tools, performance contracts, codes, power purchase agreements, how to work successfully with lenders, and the minutiae that can make the difference between “yes” and “no.”
“It used to be that the financing goal was to be budget neutral,” says Woodroof, “but many projects today can be financed with a positive cash flow.”
Although interest rates are low at this time, so is the willingness of many lenders. Moreover, many C-suite execs are loath to leverage their own balance sheets. The book outlines the tactics and strategies that have worked for real-world projects that cleared the hurdles and achieved success.