Financing Energy Efficiency Retrofits

Financing Sustainable Retrofits
Lisa Michelle Galley
GSMI Conference
21 October 2009

Presentation Overview
Energy Efficiency Financing Options
Level 1: Project Finance Options
What is the most cost-effective option for financing energy efficient measures at my property?
Level 2: From EE Project  Program
October 21, 2009

Energy Efficiency
Financing Options

A Case Study
Property Details
2,300 SF Commercial Space (Convenience Retail)
Owner-Occupied
Energy Inefficient structure: needs lighting, lighting control, and refrigeration upgrade.
Electricity Used: 155,000 KWh (per annum)
Electricity Cost: $12,200 (per annum)

A Case Study
A Fantastic Retrofit Opportunity:
Total Cost of EEM: $7,700
Energy Use Reduction: 38,500 kWh (per annum)- a 25% reduction
Estimated OPEX Reduction: $3,050 (per annum)
Payback Period: 2.5 years
ROI: 196%
IRR: 38%
Once you have the $$$$$:
62 owner-occupied properties in 5 western states.
Retrofit measures needed across entire portfolio- stores have a similar layout and equipment.
Total Cash Needed: $475,000

Modest Investments add up across Portfolio:
Annual Energy Saved -> 2.4 GWh
Financial Impact
Annual Increase in Cash Flow -> $155,000
Potential Portfolio Value Increase -> $1,900,000
Environmental Impact
Reduction in Annual GHG Emission -> 1,716 Tons CO2 =
Removing 314 passenger vehicles from the road
Power for 156 households

Know how different trends can impact your platform:Is your portfolio more affected by market trends, government regulations or both?
What’s your BAU? How does ‘business as usual’ look for your properties and operations?
Do your leases help or hurt your EE program? Do your leases-in-place assure you the EE savings you have contracted for?
Evaluate financing options: What is the most cost-effective method for financing retrofits across my portfolio? Have I secured all available incentives?
Ensure performance: How do I establish appropriate financial and energy targets? What is the best method for measuring post-retrofit measure of performance?

Next steps, resources & contact
Ask us about a briefing on finance strategies for your portfolio.
We would be happy to discuss your sustainability initiatives and the opportunities you may have to maximize value. Contact us to request a special briefing consultation about your projects – our info is below.
Get free resources
We have published several articles and led many workshops on green finance and investment. A few of them are mentioned below:
Workshop: Getting Started in Green Finance (sign up on our mailing list)
Recent webinar: Green Finance for Affordable Housing (view on our website)
Articles: Present Your Green Project to Your Lender (download from our website)
Blog: Our Green Journey (subscribe online to get updates)
Galley Eco Capital
+1 (415) 655-6668
Email: Info[at]galleyecocapital.com
http://www.galleyecocapital.com

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Financing Energy Efficiency Retrofits

by Galley Eco Capital on Oct 22, 2009

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Financing Energy Efficiency Retrofits — Presentation Transcript