11/01/2013

A New Scale for Energy Efficiency Financing

Facility managers can take advantage of project financing

By

 

Chris Olson
Chief Content Director

“There’s no such thing as a free lunch,” economist Milton Friedman said – but he didn’t know about today’s financing vehicles designed to tap the vast value of energy efficiency. In fact, building owners can structure a deal that allows them to have their cake and eat it too.

Facility managers have little control over the cost of their energy, but they can control their consumption through energy retrofits and high-efficiency equipment. However, they are daunted by the upfront cost of investing in energy efficiency. BUILDINGS surveys have repeatedly shown that initial cost is the No. 1 obstacle to implementing an energy conservation project in commercial buildings.

The solution to this conundrum is financing that enables the energy savings to pay for the upfront cost. This month’s article on energy financing (page 42) explains how new vehicles like PACE (Property-Assessed Clean Energy), utilities’ on-bill programs, and managed energy services agreements (MESAs) are allowing building owners to tap into financing with positive cash flow from the outset if the energy savings outweigh the finance cost. These vehicles can benefit both tenants and landlords in multitenant buildings, sidestepping the split-incentive disconnect that undermines efficiency in leased spaces. As the lending community becomes more experienced with the value of energy efficiency, some industry experts foresee a surge of private, third-party capital on a scale similar to what is available for infrastructure and commercial real estate development.

You may already have the funds for an energy improvement project – they’re hiding on your budget’s line item for energy expenses. A retrofit with financing that produces positive cash flow recovers the cost of energy waste that will otherwise be lost.

“He that goes a-borrowing goes a-sorrowing,” honest Ben Franklin said – but what did he know about energy financing with positive cash flow?

 


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.

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.

 


Tennant Company is a recognized leader in designing, manufacturing and marketing solutions that help create a cleaner, safer, healthier world. With thousands of satisfied customers already using award winning ec-H2O technology, why not see what you're missing? Test ec-H2O on your soils in your facility. Get a free demo.


Tennant Company is a recognized leader in designing, manufacturing and marketing solutions that help create a cleaner, safer, healthier world. With thousands of satisfied customers already using award winning ec-H2O technology, why not see what you're missing? Test ec-H2O on your soils in your facility. Get a free demo.

 

Replace core drilling with Connectrac In-Carpet and On-Floor Wireways, the proven connectivity solution in open interior spaces of all kinds. These elegant low-profile wireways are great for AV / telecom connectivity wherever it’s needed.

 

Add highly responsive multi-zone comfort to any building project, in any climate. Our CITY MULTI H2i R2- and Y-Series VRF systems give you flexibility to fit the needs of any building. Enjoy 100% heating capacity at 0°F outdoor ambient, and 85% heating capacity at -13°F outdoor ambient.  For more information, log on to www.mitsubishipro.com


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.

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.

 


Tennant Company is a recognized leader in designing, manufacturing and marketing solutions that help create a cleaner, safer, healthier world. With thousands of satisfied customers already using award winning ec-H2O technology, why not see what you're missing? Test ec-H2O on your soils in your facility. Get a free demo.


Tennant Company is a recognized leader in designing, manufacturing and marketing solutions that help create a cleaner, safer, healthier world. With thousands of satisfied customers already using award winning ec-H2O technology, why not see what you're missing? Test ec-H2O on your soils in your facility. Get a free demo.

 

Replace core drilling with Connectrac In-Carpet and On-Floor Wireways, the proven connectivity solution in open interior spaces of all kinds. These elegant low-profile wireways are great for AV / telecom connectivity wherever it’s needed.

 

Add highly responsive multi-zone comfort to any building project, in any climate. Our CITY MULTI H2i R2- and Y-Series VRF systems give you flexibility to fit the needs of any building. Enjoy 100% heating capacity at 0°F outdoor ambient, and 85% heating capacity at -13°F outdoor ambient.  For more information, log on to www.mitsubishipro.com


 
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