Need Some Good News? Energy Efficiency Financials Are Too Good and True!
Are you looking for some good news for your organization's bottom line? Energy-efficiency investments can actually help revenue generation, expense reduction, and facilities management. Additionally, your actions to reduce energy consumption can improve the value of your building, create a healthier environment for your occupants, and generate positive results for our community by reducing greenhouse gases.
Right now, some “no brainer” economics are available that any organization should be considering to reap the rewards for smart energy-efficiency investments. Cashflow-Neutral Financing allows organizations to improve their indoor environments and productivity, without out-of-pocket investment. It turns out being a good corporate citizen is good for the bottom line too. The multiple incentives and financing available for energy efficiency projects make for an attractive financial proposition.
Here’s a Rundown on the Heaping Stack of Value in Smart Energy Enhancements:
Financing:
Special 0%/low-Interest Financing with No Out-of-Pocket Cash Outlay:
0% Financing for Nonprofit Organizations: In addition to the above Energy-Savings payments, qualifying nonprofits can borrow up to $25,000 toward energy efficiency projects at 0% interest.
1% Financing for Commerical and Nonprofit Organizations for energy efficiency projects upt to $100,000.
Financing Paid with the Energy Savings - your monthly payments are equivalent to the amount you pay! Energy Efficiency projects can be fully financed with monthly payments based upon projected energy savings. So, you get the benefits of the upgrade with a cash flow-neutral model, which simply shifts part of your typical utility bill payments toward loan repayments, for the amount saved with the new systems. The amount you save is equivalent to the amount you pay!
With these cashflow-neutral financing options, organizations can actually become cashflow positive with the rebate and grant checks delivered.
Rebates & Grants
Combined Rebates and Grants could cover 75% or more of capital-investment project costs.
Generous Rebates:
Utilities provide rebates for a range of
Xcel Energy offered LED Lighting double rebates for upgrades in 2020; these could cover up to 75% of the total project costs (light fixtures/bulbs and installation).
HVAC Controls rebate can be delivered for installing smart, Web-based systems, with enhanced outside air use, as well as Variable Frequency Drives (VFDs).
COVID-19 Pathogen Abatement solutions, such as bipolar ionization, can quality for energy efficiency rebates since they treat return air and reduce heating/cooling energy required for outside air.
Great Grants:
In addition to the above Rebates, grants are also available for $3,000 to $50,000 for qualifying projects, from a variety of sources.
And, several of these grants can be stacked to offer a combined impact reducing project costs and accelerating the payback timeframe.
Operational Expense Reduction
Ongoing Utility Savings
Those energy savings just keep on giving. Many projects have a simple payback period in under 2 years, and year-over-year energy savings reduce your operational expenses (OpEx) for good, allowing you to re-allocate those savings toward strategic initiatives.
Maintenance & Operations (M&O) Savings
Many energy-efficiency upgrades also have a significant impact reducing facility maintenance expenses, beyond energy savings.
From long-life, no-ballast fixtures and bulbs that require minimal maintenance for your LED Lighting, to smart sensing and controls delivering Remote Monitoring and Alerts helping to remotely make adjustments or diagnose and resolve issues, minimize service call fees, you can see decreases in other OpEx too.
Added Value for Building + Environment
Enhanced Indoor Environment Quality for Occupant Comfort, Health, and Safety
LED Lighting quality (intensity, color, etc ) can help with occupant comfort, reduced strain, increased productivity and more.
Indoor Air Quality (IAQ), from better-managed comfortable temperatures to lowered CO2 and VOCs, with maximized outside air (recommended by the CDC and ASHRAE to help in COVID-19 pathogen abatement), all help to improve the occupant experience, health, wellness and productivity.
These upgrades also help to boost the value of your building and office space, for employees and guests and for purchase/lease considerations.
Create a stronger sustainability stance for your organization and brand, reinforcing your values and attracting and retaining talent with shared values and priorities.
Case in Point
Here’s how one Minify Energy client, a non-profit organization with a 75,000 square foot mixed use facility, is leveraging this opportunity for lots of good.
Total Project: HVAC Controls & LED Lighting $115,000
(Financing: $25,000 at 0%; $90,000 at 3.9% paid over 60 months using energy savings)
Cashflow Positive: Rebates & Grants $27,150
(23.8% of total project cost)
Net Cost $86,902
Annual Energy Savings = Loan Payment $17,887 (24% of current annual energy costs)
(used to pay financing payments, then yearly savings on bottom line)
Payback on net cost 4.86 years
LED Lighting and smart HVAC controls save nearly 25% on electricity.
When you take a moment to investigate the options, we think you’ll become a believer too. Minify Energy is here to help you minimize your energy and simplify the process. We’ll help with turnkey project management, starting with a free, no-obligation building assessment to orchestrate the above financing/incentives and implementation. So, let’s get started working on the health of your financials, your tenants and the environment!