Finance
Upgrading a chiller, installing a solar photovoltaic system, undertaking a deep whole-building retrofit—all these projects require large upfront investments and have long payback horizons even as they deliver operational savings. External funding and innovative finance may complement the use of internal capital or operating budgets to support investments. And increasingly, new metrics for value are reshaping the discussion from straight financial “return on investment” of a technology to new metrics on building asset value and achieving co-benefits such as improvements in productivity, environment, health, and resilience. Photo Credit: Michael Fleshman/Flickr
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Major U.S. Cities to Launch Commercial PACE Programs
To date, Commercial Property Assessed Clean Energy (PACE) programs have generated 71 projects across four U.S. cities, totaling US $9.7 million in investment, according to a recent policy brief from Lawrence Berkeley National Laboratory, the Clinton Climate Initiative (CCI), and Renewable Funding1.
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CEE IEE Ratepayer Electric Efficiency survey results ENG
Topic(s) Driving Efficiency Through Innovative Financing: Diversey’s Model
Organizations are seeking innovative financing mechanisms and models to enable energy efficiency within their building portfolio, as many cite lack of available capital as a large barrier to implementing efficiency projects. Diversey, a leading manufacturer of cleaning and hygiene products with a global reach of over 60 countries, has developed a unique approach to financing its internal...
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Issue Brief: Unlocking the Building Retrofit Market: PACE Financing
Topic(s) Property-Assessed Clean Energy Financing: Alive and Well in the Commercial Sector
Property-assessed clean energy (PACE) financing remains a viable model for commercial buildings in the U.S. and around the world, even though U.S. residential PACE programs are facing delays. PACE financing is an innovative funding mechanism that overcomes many of the largest barriers to energy efficiency and renewable energy retrofits, especially:
Protecting the Market for Energy Efficiency Retrofits – Mind the GAAP
It is well known that energy efficiency retrofits of buildings provide attractive and stable financial returns through energy, water and operational cost savings over a long period of time. McKinsey estimates that $1.2 trillion in potential annual energy savings can be achieved through $520 billion of energy efficiency investments over the next decade. However, despite these...
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Issue Brief: Mind the GAAP
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Financing Models for EE & RE in Existing Buildings
Topic(s) New Financing Models Overcome Capital Barriers to Energy Efficiency
The most commonly cited barrier to implementing energy efficiency and distributed renewable energy improvements in buildings is a lack of capital available to fund clean energy capital, meaning property owners don't have the capital budgets and can't find the financing to proceed with investments. New financing structures are emerging, however, that could break down capital barriers to...