![]() ![]() ![]() ![]() ![]() | ||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ||||||
![]() | ![]() | ![]() | ![]() | ![]() | ||
![]() | ||||||
![]() | ||||||
![]() | ![]() |
| ![]() |
Step 6: Arrange FinancingThe following financing techniques can often be combined to help you pay for energy-efficient measures in commercial and institutional buildings. Option 1: Financial IncentivesFunding from the Energy Innovators Initiative's Energy Retrofit Assistance (ERA) for existing buildings, the Commercial Building Incentive Program (CBIP) for new buildings and other financial assistance across Canada can help you reduce your payback periods. Option 2: Internal Financing and BorrowingSavings should continue after the payback period ends, so energy efficiency measures are a worthwhile long-term investment. Your organization may be able to pay for measures out of your own funds while still balancing the books. Option 3: Bank LoansIf your organization does not have cash in hand, talk to your bank. Even in times of high interest rates, the value of your energy savings is often greater than the loan payment, so you are ahead every year with a relatively small investment of funds. Try to combine measures so that the payback periods are shorter than the loan. Option 4: Energy Performance ContractingEnergy management firms will sometimes plan, implement and monitor your retrofit projects, and you pay them out of your future energy savings with no up-front costs or risks. This is often more expensive than paying costs yourself, and energy management services companies usually restrict this arrangement to larger clients. Read our EPC Primer for general information, or order the Practical Guide to Carry Out Projects by Using Energy Service Companies (ESCO) available from the Association of Institutional Property Managers Option 5: Leasing or Instalment PaymentsSome leasing companies, equipment manufacturers and energy distributors will lease energy-efficient equipment and systems. There is usually no up-front cost, and you make monthly or quarterly payments for a specified term, but repairs and ongoing monitoring may cost extra. If the financing is considered "instalment payments," a "lease purchase," "financing lease" or "conditional sale," you keep the equipment at the end of the term. As with leasing a car, small payments are spread out over time, but interest rates are typically higher than a traditional loan. Option 6: Manufacturer-Guaranteed SavingsSome manufacturers offer guaranteed energy savings in addition to performance warranties for their equipment. Option 7: Issuing BondsAlthough this practice is rare, learn how the University Health Network in Toronto issued bonds to financial investors to pay for energy retrofits and new buildings. Other OptionsTalk to your accountants about other methods to finance your projects. |
![]() | ![]() | ||
|