AECS, LLC
Energy Efficiency
AECS, LLC
2
• Alternative Energy
• Conservation
• Efficiency
AECS, LLC
 Solar
 Wind
 Geo-thermal
 Bio-fuels
 Hydrogen
 Nuclear
3
AECS, LLC
 Computerized Controllers
 Resource Sharing
 Better Management Systems
 Doing Without
4
AECS, LLC
 Enabling the systems you have in place to
operate with less energy
5
 Without altering appearance, performance or
productivity
 Creating compelling return on investments
AECS, LLC
“Energy efficiency is the fifth fuel after coal, gas,
renewables and nuclear. It should be our first
choice in meeting our growing demand for
electricity as well as solving the climate
challenge”
Jim Rogers, CEO Duke Energy
AECS, LLC
“Efficiency is the steak, renewables are the sizzle”
Carl Pope, (former) Executive Director, Sierra Club
AECS, LLC
The Energy Efficiency Market
GHG emissions reduction could be as high as 40% by 2030
The United States could save 1.2 Trillion Dollars through
2020 by implementing energy efficiency measures.
McKinsey Report, 2009
“By 2030 energy efficiency and behavior change will offset
more CO2 than all new wind, solar and alternative energy
generation combined”, World Energy outlook, 2010
AECS, LLC
“Why we need to see the light about
Energy Efficiency”
Cover Page Article, Time Magazine, January, 2009
AECS, LLC
The old-school case for energy savings
AECS, LLC
Show me the Money!
The new-school case for energy savings
AECS, LLC
Chattanooga Warehouse Project Summary
Storage Warehouse
Total Project Cost $102,420.00
Avg Monthly Electric Costs $13,368.00
Total Monthly Savings $3,012.00
Simple Payback Period 34 Months
ROI 35.29%
AECS, LLC
AECS, LLC
Incentives, grants, loans and government
programs have tilted the economics of
Energy Efficiency Projects considerably
AECS, LLC
Database of State Incentives for Renewables & Efficiency
US Department of Treasury
Energy Star
US Department of Energy
Summary Links
AECS, LLC
Technology
Compelling ROI
Guaranteed Savings
Material Rebates
Preferred Financing
Tax incentives
M & V
Public Relations
AECS, LLC
AECS, LLC
Primary Barriers to EE Implementation
High upfront capital costs
Long payback periods
Uncertainty of savings (perceptions of risk)
Budgets do not prioritize energy efficiency
Split incentives
Limited available capital
AECS, LLC
• Cash
• Financing
• Leasing
• Shared Savings (performance contract)
• Energy Service Agreement
Primary options for funding an EE Project
AECS, LLC
Cash
(Internal Financing)
Owner can take advantage of all rebates & tax incentives
Owner can take an accelerated depreciation on qualifying equipment
Owner gets 100% of the savings, right up front
AECS, LLC
Financing/Leasing
Many excellent loans in market right now for EE projects
Rate costs are usually less than energy savings
Financing costs can be tax deductible (depending on lease structure)
Chattanooga Warehouse Lighting Proposal
Summary
Warehouse Storage
Total Project Cost $102,420.00
Avg Monthly Electric Costs $13,368.00
Total Monthly Savings $3,012.00
Lease Cost (60 months) $2,203.00
Monthly Profit (pre tax) $809.00
AECS, LLC
Atlanta Client
Total Project Cost $74,499.00
Projected monthly savings $2,593.00
75/25 share (60 Months) $648.00
Total client “profit” $38,900.00
AECS, LLC
Energy Service Agreement
Landlord or 3rd party agrees to pay historical energy use for
client for a contracted period of time
Undertakes energy efficiency upgrades at their cost
Imposes management fee (not to exceed historical energy costs)
Profits from the energy savings margin
AECS, LLC
Other Financing Options
On Bill Financing – Utility involvement
PACE – Tax value lending
Green Revolving Funds – Requires seeding
Municipal Lease Agreements – Subject to annual
appropriations
Municipal Bonds – Require scale & long initiation
AECS, LLC
Four key considerations to create a successful & efficient energy
savings project
 Financing must be easily accessible
 The investment must be based on a reliable
methodology for predicting savings
 The measurement and verification must be agreed upon
and transparent
 The risk of underperformance must be low
AECS, LLC
www.consensusenergy.com
Steve O’Neil, Managing Partner
steve@consensusenergy.com
(678) 666-4684

Alternative Energy, Conservation, and Energy Efficiency

  • 1.
  • 2.
    AECS, LLC 2 • AlternativeEnergy • Conservation • Efficiency
  • 3.
    AECS, LLC  Solar Wind  Geo-thermal  Bio-fuels  Hydrogen  Nuclear 3
  • 4.
    AECS, LLC  ComputerizedControllers  Resource Sharing  Better Management Systems  Doing Without 4
  • 5.
    AECS, LLC  Enablingthe systems you have in place to operate with less energy 5  Without altering appearance, performance or productivity  Creating compelling return on investments
  • 6.
    AECS, LLC “Energy efficiencyis the fifth fuel after coal, gas, renewables and nuclear. It should be our first choice in meeting our growing demand for electricity as well as solving the climate challenge” Jim Rogers, CEO Duke Energy
  • 7.
    AECS, LLC “Efficiency isthe steak, renewables are the sizzle” Carl Pope, (former) Executive Director, Sierra Club
  • 8.
    AECS, LLC The EnergyEfficiency Market GHG emissions reduction could be as high as 40% by 2030 The United States could save 1.2 Trillion Dollars through 2020 by implementing energy efficiency measures. McKinsey Report, 2009 “By 2030 energy efficiency and behavior change will offset more CO2 than all new wind, solar and alternative energy generation combined”, World Energy outlook, 2010
  • 9.
    AECS, LLC “Why weneed to see the light about Energy Efficiency” Cover Page Article, Time Magazine, January, 2009
  • 10.
    AECS, LLC The old-schoolcase for energy savings
  • 11.
    AECS, LLC Show methe Money! The new-school case for energy savings
  • 12.
    AECS, LLC Chattanooga WarehouseProject Summary Storage Warehouse Total Project Cost $102,420.00 Avg Monthly Electric Costs $13,368.00 Total Monthly Savings $3,012.00 Simple Payback Period 34 Months ROI 35.29%
  • 13.
  • 14.
    AECS, LLC Incentives, grants,loans and government programs have tilted the economics of Energy Efficiency Projects considerably
  • 15.
    AECS, LLC Database ofState Incentives for Renewables & Efficiency US Department of Treasury Energy Star US Department of Energy Summary Links
  • 16.
    AECS, LLC Technology Compelling ROI GuaranteedSavings Material Rebates Preferred Financing Tax incentives M & V Public Relations
  • 17.
  • 18.
    AECS, LLC Primary Barriersto EE Implementation High upfront capital costs Long payback periods Uncertainty of savings (perceptions of risk) Budgets do not prioritize energy efficiency Split incentives Limited available capital
  • 19.
    AECS, LLC • Cash •Financing • Leasing • Shared Savings (performance contract) • Energy Service Agreement Primary options for funding an EE Project
  • 20.
    AECS, LLC Cash (Internal Financing) Ownercan take advantage of all rebates & tax incentives Owner can take an accelerated depreciation on qualifying equipment Owner gets 100% of the savings, right up front
  • 21.
    AECS, LLC Financing/Leasing Many excellentloans in market right now for EE projects Rate costs are usually less than energy savings Financing costs can be tax deductible (depending on lease structure) Chattanooga Warehouse Lighting Proposal Summary Warehouse Storage Total Project Cost $102,420.00 Avg Monthly Electric Costs $13,368.00 Total Monthly Savings $3,012.00 Lease Cost (60 months) $2,203.00 Monthly Profit (pre tax) $809.00
  • 22.
    AECS, LLC Atlanta Client TotalProject Cost $74,499.00 Projected monthly savings $2,593.00 75/25 share (60 Months) $648.00 Total client “profit” $38,900.00
  • 23.
    AECS, LLC Energy ServiceAgreement Landlord or 3rd party agrees to pay historical energy use for client for a contracted period of time Undertakes energy efficiency upgrades at their cost Imposes management fee (not to exceed historical energy costs) Profits from the energy savings margin
  • 24.
    AECS, LLC Other FinancingOptions On Bill Financing – Utility involvement PACE – Tax value lending Green Revolving Funds – Requires seeding Municipal Lease Agreements – Subject to annual appropriations Municipal Bonds – Require scale & long initiation
  • 25.
    AECS, LLC Four keyconsiderations to create a successful & efficient energy savings project  Financing must be easily accessible  The investment must be based on a reliable methodology for predicting savings  The measurement and verification must be agreed upon and transparent  The risk of underperformance must be low
  • 26.
    AECS, LLC www.consensusenergy.com Steve O’Neil,Managing Partner steve@consensusenergy.com (678) 666-4684