Building Energy Performance helps building owners assess the potential for savings, make pragmatic and informed choices, develop robust financial and energy models, provide truly independent procurement, and plan and deliver projects. We focus on the potential financial performance of your building, manage the impact on your business and/or tenants, and help you pay for energy efficiency upgrades by reducing utility costs and improving cash flow.
Commercial and light industrial building owners now have the opportunity to capitalize on the explosion of energy efficiency technologies, renewable energy solutions and the introduction of Commercial Property Assessed Clean Energy financing (C-PACE) in Colorado to reduce utility costs, improve cash-flow and increase the value of their building.
- Which changes will have the biggest impact on my energy costs?
- What return will each investment deliver?
- How practical is the project and how will it affect my tenants or business?
- How much will the project improve my cash-flow?
- How will my current lease structure distribute the savings?
- How can I effectively finance energy efficiency upgrades?
If energy costs are impacting your bottom line, or any part of your building’s energy infrastructure is failing, or close to end-of-life, you will shortly have to ‘pay to replace’. This is typically on a short-term note or from your balance sheet.
The alternative is to assess your building’s energy usage, identify the changes that will substantially reduce your utility costs, add the failing piece of infrastructure into the overall project, use C-PACE to arrange a mortgage on the building over 20 years paid through a county assessment, and simply pay for the upgrade out of the savings on your utility bill.
What do Building Owners and Businesses Need
Technical analysis from an engineering or scientific perspective is interesting to other engineers and scientists. It has been our experience that buildings owners want to start with the bottom line and work back to the technical specifications. Building Energy Performance approaches energy efficiency by identifying the upgrades that offer the best improvement to your cash flow for the lowest investment — using off-balance-sheet financing through C-PACE.
Typically, buildings receive energy efficiency upgrades when they are under-performing, bought, sold, refinanced or when a new lease is being negotiated. If you experience a major failure in your energy infrastructure, or if equipment is at its end of life and you are reviewing the efficacy of your capital budget expenditure, then you should consider a broader energy efficiency retrofit using C-PACE. For all of these scenarios, we will bring key stakeholders together around a financially robust and pragmatic upgrade plan.
How we do it…
Energy Efficiency is Where the Real Savings Are
While it may be exciting to place a solar array on your roof, it will not replace any of your existing energy infrastructure — only augment it. The biggest impact on your cash flow is likely to come from an energy efficiency retrofit that utilizes new lighting, improved insulation, upgraded glazing, enhanced building management systems, smart load scheduling, and simple operational changes. We will help you compare these changes to identify where the low hanging fruit lies, determine the costs and benefits of each option, and then compare these improvements to on-site renewable energy generation options.
As a general guide energy savings are more likely if opportunities are considered in the following order:
The one exception to this approach can be Demand Reduction, where short period of high energy consumption may disproportionately affect your utility bill. If you have not reviewed your utility bill in detail and considered how to reduce your demand charge, then we strongly encourage a free assessment, as the greatest savings often come from demand charge reduction.
Failing Energy Infrastructure
If your energy infrastructure is at its end-of-life, or you have experienced a catastrophic failure but lack the funds or ability to borrow sufficient money to repair or replace the infrastructure, then an energy efficiency retrofit maybe the solution.
It’s not unusual for a building to find itself in a ‘fix or fail’ scenario as a result of major infrastructure failure. It’s sometimes possible to avoid property bankruptcy with a comprehensive overhaul of the building that addresses the systemic reason for the buildings under-performance. While C-PACE loans are focused on energy efficiency and renewable energy improvements, some foundational costs are accepted as part of an upgrade, such as:
- Roof improvements related to solar PV installations
- Asbestos abatement
- Replacement of HVAC systems
- Water conservation measures
- Thermal insulation and windows
If a comprehensive refit would breath new life into a failing or hard to sell building, then it may be worth investigating the possibilities. Contact us today to learn more.