Electric companies right now are actually paying people to use less electricity. I know that sounds...
Many building owners recognize the substantial financial benefits of energy efficiency projects. For instance, a $100,000 investment in smart heating controls can save a building $100,000 annually, translating to $1,000,000 over ten years. Despite these clear advantages, many buildings hesitate to implement these measures due to the significant upfront costs.
Low/zero interest financing removes the upfront cost barrier to energy efficiency
Verdant has partnered with numerous utilities like Con Edison across the country to offer subsidized loans that eliminate the upfront costs of energy efficiency projects. These loans can be at zero or low-interest rates, making it possible for buildings to be cashflow positive with their projects from day one. This changes the economics of energy efficiency projects, making them highly attractive and accessible.
The program works by providing loans that cover upfront costs left after utility rebates are applied
- Zero Upfront Cost: By offering loans with zero or low-interest rates, Verdant and the utilities make it feasible for building owners to start saving money immediately.
- Practical Example: A building spending $500,000 annually can install smart heating controls costing $100,000. With these controls, the building saves $100,000 per year on heating bills. With Verdant’s program, a loan covers the $100,000 cost, transforming an immediate financial burden into manageable monthly payments, which are significantly lower than the monthly savings, resulting in net positive cashflow.
Addressing Common Questions
- Non-Gas Buildings: While the program primarily targets gas-operated buildings, there are options for oil-run buildings, albeit at higher interest rates. The financial benefits still often justify these loans.
- Project Identification: Building owners can get a detailed analysis of potential energy efficiency projects through Verdant’s recommended engineers or their utility audits.
- Multiple Financing Options: Depending on the maturity period, interest rates can vary. Verdant's calculator shows how different financing options affect monthly cash flow.
Next Steps for Building Owners
- Immediate Action: Owners should quickly determine their eligibility by using this free online tool and submit applications to secure rebates and favorable loan terms. A Runwise representative will follow up with you and assist in the process with Verdant.
- Consultation: Engage with Verdant-recommended engineers to identify the most effective energy efficiency projects.
