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
Thought leaders on energy efficiency finance convened in Chicago May 13-15, 2013, for the 7th annual ACEEE Energy Efficiency Finance Forum. Participants discussed the latest developments and innovations in energy efficiency finance, in particular:
What’s It Worth? Comparing ways to value solar PV installations Investments that save energy can improve property value, but when it’s time to sell a building, the question remains: what is it worth? As solar photovoltaic (PV) systems gain popularity, appraisers need a standard way to determine the value they add to buildings. Best practices have begun to emerge. Three...
Property Assessed Clean Energy (PACE) programs use a senior lien property tax assessment process to finance renewable and energy efficiency upgrades for buildings. Most PACE programs require property owners to get consent from existing mortgage lender before starting PACE-funded improvements – and that has the potential to derail projects if lenders don’t consent.
The Climate Finance Options (CFO) website is a comprehensive source of information for developing country policy makers on sources of climate finance. The website was created by the United Nations Development Progamme (UNDP) and the World Bank. The website includes a searchable database of more than 60 funding sources available for adaptation and mitigation projects that reduce climate...
Energy efficiency retrofits in existing commercial buildings help the environment, communities, and building owners and occupants.
As Europe plans the next steps to improve building energy efficiency, a report from the Buildings Performance Institute Europe (BPIE) analyzes the financial instruments available to fund deep retrofits. It also looks at the types of buildings involved and the renovation measures the financial programs support. Among the key conclusions:
The City of Melbourne has created a new program for financing energy retrofits in commercial buildings, using a variation of the property-assessed clean energy (PACE) financing model in the U.S. Melbourne’s program has some important features that cities and countries around the world may be able replicate. As part of its Zero Net Emissions by 2020 Strategy, Melbourne has launched a 1200...