Contracting Helps Save on Energy Costs
Below is a MRR and PLR article in category Home Family -> subcategory Home Improvement.
Contracting: A Smart Way to Cut Energy Costs
Summary:
Businesses are going beyond simply turning off lights to enhance energy efficiency.
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As energy costs continue to rise, American businesses are feeling the pinch. One effective solution gaining traction among commercial property owners is the "energy performance contract." This innovative approach, offered by energy service companies (ESCOs), provides financing or operating leases to enhance building efficiency.
The strategy behind energy performance contracting is straightforward: fund improvements through long-term utility savings. Typically, an ESCO guarantees that the energy savings will at least match or exceed the annual payments required to cover project costs, within a contract period ranging from seven to 20 years.
Jeff Stokes, Vice President at World Energy Solutions?"an ESCO based in St. Petersburg, Florida?"explains the choice building owners face: "You can keep paying for an inefficient building, or invest in improving it with an ESCO."
World Energy Solutions aims to reduce energy consumption by as much as 30%. They offer a suite of services like utility billing analysis, energy audits, installation of efficiency upgrades, maintenance, and ongoing monitoring to verify savings.
ESCOs offer flexible financing options. For instance, World Energy Solutions covers the entire upfront installation cost and equipment maintenance. In exchange, they receive 80% of the actual savings over at least a 10-year period.
CEO Ben Croxton of World Energy Solutions notes, "We sometimes fund the entire installation at no initial cost, benefiting from the savings generated over time."
Beyond identifying energy-saving opportunities, ESCOs handle engineering, design, and management of the whole process. They also offer staff training and continuous maintenance.
The federal government has also embraced these contracts. With executive orders mandating a 35% reduction in energy use by 2010 compared to 1985 levels, there’s a planned investment of $5 billion in energy projects. A significant portion will go to "Super Energy Savings Performance Contracts" from the Department of Energy.
By leveraging smart strategies like performance contracting, businesses, and even government entities, can achieve significant energy savings and ultimately lower their costs.
You can find the original non-AI version of this article here: Contracting Helps Save on Energy Costs.
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