Newer energy efficiency financing programs mandate a positive cash flow. The resultant energy savings, along with all applicable rebates and tax incentives, must offset the total cost of the upgrades including equipment, installation labor and financing. Cost savings from today’s energy efficient technologies are often significant, consistent and predictable. Freeing up cash from day one is now a possibility!

The energy efficiency industry formerly recommended smaller, incremental efficiency upgrade projects. The purpose was to lessen the impact to cash flow and the bottom line. This approach resulted in high development costs including paying for multiple energy audits, as well as establishing measurement and verification protocols. It also limited external financing options with commercial bank loans being the most common. Unfortunately the terms of those loans are typically only three to five years which, in most cases, is not long enough to generate sufficient energy savings that more than offset the cost of the project.

Realizing this approach was not in the best interest of the customer, the optimal solution was a comprehensive energy efficiency upgrade. By addressing as many energy saving opportunities as possible the entire project can be paid for while at the same time improving the bottom line when using such financing programs as Property Assessed Clean Energy (PACE).