Financing; A Cost Effective Alternative When Upgrading Energy Efficient Systems

Abstract

In the 1990's, many organizations are attempting to do more, faster, with less cost and improved quality. In many cases, this involves improving the efficiency of their systems. Increased competition is creating pressure to continuously improve in order to effectively compete in the marketplace. One obvious method of reducing costs and improving productivity is to upgrade old, antiquated equipment such as lighting to more modern energy efficient systems. Most projects provide a return on investment to the owner in several years, through energy and demand savings, Power Utility rebates, maintenance savings and increased productivity, however, the initial capital expense required is cost prohibitive. Budget constraints, a lengthy and complicated approval process and large up-front capital requirements are only a few "road blocks" to improvement. In order to make an equipment acquisition, every company must consider how they will pay for it! How do companies acquire the equipment they need to be more competitive? One cost effective solution -FINANCING! There are numerous benefits to both the end user customer (Lessee) and the installing contractor from utilizing financing to upgrade or retrofit to energy efficient systems. It is possible to provide design, material, installation, maintenance and soft costs as well as positive cash flow to the end user by structuring financing terms and payments around the energy savings. A wide array of programs and services are offered by many different financial organizations.