Community leaders often face a variety of challenges including energy costs, which can be among the top expenses. One thing to keep in mind, however, is that energy costs involve more than just price. Energy costs are essentially the price for electricity and natural gas multiplied by the quantity of energy used over a given period time. The simple equation looks like this: Cost = Price x Quantity/Time.
Now, some leaders may think it’s too challenging to implement energy efficiency projects to save energy or more closely manage the quantity portion of their strategy. This is largely due to obstacles such as limited resources, shrinking budgets, and other organizational challenges.
But the good news is that energy efficiency actually offers multiple financing options with an overall outcome that can be viewed as a win-win. The ‘win-win’ includes reduced emissions and grid reliability, which ultimately helps the greater community at large along with the chance for leaders to showcase their commitment to the environment and sustainability.
The first financing option includes Energy Savings Performance Contracts. This allows states and cities to fund building improvements with no upfront capital. Leaders can also easily show how the upgrades have made an impact in their local communities along with specifics about their guaranteed enery savings over time.
Another option includes a product that is only available with Constellation called Efficiency Made Easy. State and cities with sustainability goals or mandates can use Efficiency Made Easy to reduce energy consumption by baking in the cost of efficiency projects into their power contracts. This is an easy way to fund conservation measures, without an impact on the balance sheet. Through on bill financing costs of energy efficiency upgrades are factored into the price/kWh outlined in the contract. By saving energy, it improves an area’s load profile which positively impacts future power prices and the ability to meet sustainability goals over time.
There are also a range of load response options available, providing various ways to reduce energy consumption according to specific energy needs.
For more information about the multiple financing options available for energy efficiency or to find out about load response, email us at ConstellationGov@constellation.com or leave me a comment below.