Innovative Funding Options for Energy Efficiency Initiatives
An increasing number of businesses across the country are looking to energy efficiency programs to reduce energy costs and attain environmental goals. Yet, implementing these programs can be a challenge when upfront capital, expertise, and resources are often limited or unavailable.
Constellation’s solution, Efficiency Made Easy, allows businesses to implement efficiency programs with no upfront capital, a team of experts to lean on and the resources to plan and execute an efficiency program that makes sense for your unique business needs.
At next week’s Ohio Energy Management Conference, I’ll be going over the Efficiency Made Easy approach and break down how the different options work. Here’s a preview of two options that I’ll be covering in detail and how they work.
Energy Performance Contracting (EPCs)
EPCs require no upfront capital to get started and are funded through guaranteed cost savings over a contract period typically exceeding 10 years with a third party energy service company. The energy service company provides the project design and development, procurement, construction, commissioning and reporting.
Typically, government and other public sectors utilize this option to leverage short-term with long-term savings projects to enable major energy related infrastructure improvements.
In-Electric Rate Funding: Efficiency Made Easy
This option also requires no upfront capital, and energy efficiency improvements are funded through energy cost savings over a 3-5 year Agreement with an energy supply company.
The primary markets for this option include commercial and industrial enterprises, healthcare and private higher education establishments. This is a popular option for companies that want to avoid upfront capital expenditures and fund short-term energy savings projects off balance sheet. Additionally, it provides the means to achieve corporate compliance with regulatory requirements, meet environmental goals, improve electricity load profile, realize energy cost savings and asset appreciation, and reduce operation and maintenance costs. Customers will receive full warranty coverage and retain the benefit of the efficiency measures at the end of the electricity contract.
To learn more about energy efficiency options available, we invite you join us for our 2013 Ohio Energy Conferences scheduled to take place February 26th – February 28th. By attending, our goal is to provide key energy decision makers useful information as it relates to current energy market conditions and opportunities available in Ohio.