a wildly effective
energy management solution
AT ZERO COST TO YOUR BUSINESS
HERE’S WHAT YOU CAN EXPECT THROUGH OUR
SHARED ENERGY SAVINGS PROGRAM
Shared Energy Savings Program Example
Annual energy cost before upgrades= $250,000
Cost of energy efficiency upgrades = $260,000 – Funded by HWE/Lending Partner
Annual energy cost after upgrades = $150,000
Annual Energy Cost Savings = $75,000
Energy Service Agreement Term = 5 years
Annual Share Savings (30%) = $22,500
Accumulated savings over ESA term = $112,500
Accumulated savings over upgraded equipment life (15 years) = $862,500
Upfront capital required for projects = $0
What is Shared Energy Savings?
Also referred to as Enery-as-a-Service or Efficiency-as-a-Service. Similar models that we’re all familiar with are Spotify’s music as a service, SaaS – software as a Service, and cell phones/service.
This is a new way to procure energy technologies for your facilities in which you pay for the energy savings and other services that that equipment provides, without actually owning the equipment.
SES and EaaS are pay-for-performance, off balance sheet funding solutions that allow customers to implement energy efficiency projects with no upfront capital expenditure.
Energy Service Agreements are used to outline the energy measures and services implemented, as well as the terms and ownership. They will also call out the shift the of risk from the customer to the contractor and lender by including energy cost reduction guarantees.
Since the monthly amount of energy savings varies based upon operating hours, occupancy and weather; customer’s monthly payments will vary to match, allowing the customer to keep a specified percentage of savings outlined in the ESA.