New Financing Strategies for Addressing Energy Initiatives

What are Your School's Energy Goals?

With the average K-12 school spending $300 per student in energy usage, energy conservation is not only important for your school's environment but also impacts the bottom line. Energy initiatives ranging from LED lighting to investing in solar can result in significant utility savings. However, it can be challenging to address all initiatives in a timely manner within budget constraints. Explore the scenario below that outlines a common challenge that many schools face when addressing multiple initiatives after an energy audit. 


K-12 Energy Projects

Accelerate Energy Initiatives with Financing

Following an energy audit, a school was faced with the challenge of funding several facility upgrades totaling $6MM. The school decided to compare the benefits of financing versus using the school's annual budget. Utilizing a finance facility with a forward rate lock, the school could accelerate its ability to address key upgrades and take advantage of energy savings now. Using only the school's existing budget, it would take 7 years to address all of the energy initiatives. During which time, the school would be paying higher utility bills and repair costs.

After calculating the utility savings and realizing the timely energy incentives that exist today would not be available 3-4 years from now, the school chose to finance all of its energy initiatives under one finance facility. Utilizing a 10-year finance facility the school aligned energy savings with the payment schedule which minimized budget implications. 
 

Benefit from Energy Savings Today

By financing all of the energy initiatives in one year, the school was able to increase operational efficiencies and significantly reduce its utility expenses. The total savings of $750,000 per year aligned with the payment schedule resulting in a cash-flow neutral financing strategy. 
 


Learn more about using financing to move your energy projects forward. 
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