Through an Energy Services Agreement (ESA), savings generated pay for the retrofit investments while building owner continues to pay historical, adjusted baseline energy costs.
Agreement
- Building owner pays the Partnership its baseline historical energy bills, which are adjusted for actual changes in weather utility rate and occupancy/usage. Energy usage in tenant space can be measured and passed through directly.
- The Partnership pays, as agent, the actual lowered utility bills on behalf of owner.
Investment
- The Partnership analyzes each building, then oversees the purchase and installation of agreed optimal energy efficiency equipment and performance monitoring services.
- The installed Active Energy Management controls and software manages the performance of the installed equipment to ensure the forecast savings are achieved.
Completion
- At the end of the contract term, building owner retains the equipment installed and resumes paying the lowered energy bills.
- How it Works: The graph below summarizes how the ESA model works financially for both the building owner and the partnership:
- Before ESA, the building owner pays at existing, higher baseline level.
- During ESA, the building owner pays the Partnership the equivalent of or slightly lower than the historical baseline, which reflects what energy service costs would have been without retrofit.
- The difference between the historical baseline and new energy service cost post-retrofit pays for the retrofit investment.
- After ESA, the building owner keeps the equipment and benefits from full utility cost reduction.
