11/01/2013

New Financing Solutions for Energy Retrofits

Jump over the obstacle of initial cost and fund your money-saving project

By

 

For years BUILDINGS readers have rated energy as their number No. 1 operating cost concern. And for as many years, they have also said that the No. 1 obstacle to an energy improvement project is initial cost.

In a survey of building owners and facility managers conducted in June 2013 for this report, 44% of respondents said that initial cost is the greatest obstacle to an energy retrofit. That percentage of respondents is more than four times larger than for any other hurdle to a retrofit (see table).

However, new financing vehicles are helping owners to overcome this obstacle. The goal is to use future energy savings to pay for the upfront cost of energy retrofits. When structured properly, such vehicles can generate positive cash flow from the outset. With longer terms, they can also fund deeper retrofits that supply more savings.

While it takes time and resources for building owners and lenders to navigate the financing labyrinth, the results can be well worth the effort. If your organization is wasting money on inefficient equipment, it may be able to quantify the waste and use it to finance energy improvements without paying large initial costs.

This special report looks at several emerging solutions: PACE (Property-Assessed Clean Energy), on-bill financing, ESCOs (Energy Service Companies), and managed energy services agreements (MESAs). The article also looks at the special situation of small commercial buildings under 50,000 square feet.


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Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.


Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.


When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

Yaskawa drives offer quality performance for air handlers and cooling towers on the roof to secondary chilled water pumps in the basement

Bluebeam® Revu® simplifies digital facilities document management from design review to leveraging as-builts, maintenance manuals and O&Ms submittals.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.


Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.


Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.


When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

Yaskawa drives offer quality performance for air handlers and cooling towers on the roof to secondary chilled water pumps in the basement

Bluebeam® Revu® simplifies digital facilities document management from design review to leveraging as-builts, maintenance manuals and O&Ms submittals.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.


 
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