The Government provides many essential products and services to the public sector. For government operations to provide these essentials it must maintain capital reserves while effectively improving the function and operations of building facilities. The government is able to successfully take on these tasks with Energy Performance Contracting. This article will provide you information on Energy Performance Contracting and how it can benefit your governmental operations.
Read now to learn about the benefits of Energy Performance Contracting for improving governmental operations while reducing costs.
What Is Energy Performance Contracting?
The public sector is increasingly investing in Energy Performance Contract projects and renewable energy initiatives to achieve their air quality, economic, and energy goals.
Energy Performance Contracting (EPC) is a performance-based procurement method and financial mechanism that helps with building renewal through utility bill savings. EPC is offered by Energy Service Companies (ESCOs) to help public sector facilities obtain and finance essential energy efficiency projects.
How Does Energy Performance Contracting Work?
ESPCs are typically designed to be cash-flow positive or neutral, where the amount of monthly energy savings are at least equal to the amount of the monthly payment needed to finance the improvements. Most ESCOs guarantee the projected energy savings, and will reimburse the customer if the savings are not realized.
In other words, EPC will help provide you building improvements with energy savings, without draining your capital reserves. It can also provide additional savings to be used to lower operating costs or savings can be used for additional improvements.
An EPC replaces aging infrastructure with more efficient equipment to improve governmental operations and reduce costs.
It can help improve the following building infrastructures:
-HVAC Systems
-Water Systems
-Lighting Systems
-And, in some cases can include renewable energy installations – further enhancing governments ability to reduce energy costs.
The Benefits of Energy Performance Contracting
Energy Performance Contract projects provide invaluable benefits:
-EPC makes capital energy improvements while preserving limited capital fund dollars.
-EPC makes energy savings pay for improvements.
-EPC reduces utility expenses, while reducing repair and maintenance cost.
-EPC modernizes building operations, while providing technical and operations training.
-EPC helps building operations become more environmentally friendly and conserves scarce energy resources.
EPC projects today are typically financed by third-party financial institutions using financing vehicles that are tailored to the requirements of an individual project, not by ESCOs. Tax-Exempt Lease Purchase Agreements, also called Municipal Leases, allow the customer to finance an EPC project without carrying a liability on its balance sheet.
Using lease-purchase financing increases public administrators purchasing power by helping them to reap the benefits of using both the capital and operating sides of their budgets within the same budget year. We have provided over $800 million in structured lease-financing for Energy Performance Contracts. Take advantage of our track record and experience.
Grant Capital Management is a leading provider of tax-exempt lease-financing to the public sector. We finance almost any type of essential-use capital equipment, real property or Energy Performance Contract. Since 2000, we have funded over $3.7 billion in lease financings. Grant Capital designs master leases, taxable and tax-exempt lease-purchase agreements and operating leases from $500,000 to $60 million and beyond with terms in excess of 20 years to meet our clients’ specific requirements.
If you need lease-financing services today, contact Grant Capital Management at 410. 715.9135 or click here today!
