Want to read more? This page provides a collection of resources including sector energy financing primers, financing option fact sheets, high-level market overviews and guides, and information on financing policies and programs in your area, all in one place.
Sector Energy Financing Primers
The industrial sector is a significant consumer of energy, accounting for nearly a third of energy consumption in the U.S. Industrial facilities are often energy intensive due to their size and the energy consumption of process and cross-cutting industrial technologies such as furnaces and compressed air systems. There are important opportunities to save energy by implementing best practices and energy saving technologies. Manufacturers are using a variety of financing strategies to fund energy reduction, some of them quite innovative.
Energy consumption in state and local government buildings totals nearly 2.9 quadrillion Btus annually. With a 20% improvement in energy performance, these buildings could save $5.4 billion annually in avoided energy costs. Energy reduction in the public sector reduces operational costs, frees up much-needed funding for public priorities, and demonstrates good stewardship of taxpayer dollars.
The healthcare sector accounts for over 4 billion square feet of floor space in the United States and spends over $10 billion annually on energy, making hospitals the second most energy-intensive building type in the U.S. The sector has been a market leader in the adoption of innovative internal funding strategies for energy projects, and other common financing solutions for energy reduction and onsite generation include leases, loans, and energy savings performance contracts (ESPCs).
The higher education sector accounts for over 1.8 billion square feet of floor space in the United States and spends an estimated $2.7 billion annually on energy costs. Higher education institutions play a unique role as labs for innovation and research, and many schools are using innovative financing strategies to implement energy reduction and other generation projects. The sector has been a market leader in the adoption of energy savings performance contracting (ESPC) and, more recently, revolving loan funds. Other common financing approaches include leases, loan and debt financing, and other forms of internal funding.
Better Buildings & Better Plants Financing Resources
External Financing for Energy Projects
This worksheet was informed by Financial Allies working with the Department of Energy (DOE) through the Better Buildings & Better Plants Initiative. It is designed to help organizations select appropriate financing mechanisms and shorten the decision-making timeline to enable capital projects.
Making the Business Case for Energy Efficiency in Commercial Buildings
This toolkit includes a selection of resources to support commercial building operations staff in making the business case to upper management for energy reduction projects.
Financing Options for Onsite Generation, Energy Storage, and Energy Efficiency Projects
This fact sheet outlines a six-step process to help organizations select a financing mechanism for onsite energy generation, storage, and/or energy reduction projects.
Energy Savings Performance Contracting (ESPC) Toolkit
This toolkit is a collection of resources that will enable state and local governments to learn and benefit from the work of the ESPC Accelerator. It includes the best practices and innovative approaches that states, cities, and K-12 schools have used to successfully establish and implement performance contracting.
Power Purchase Agreements (PPA) Overview
Designed to help organizations learn about power purchase agreement (PPA) options, this overview document includes information on physical, virtual, and aggregate PPAs. The document also highlights case studies of successful PPA projects from three Better Buildings & Better Plants partners.
Efficiency-as-a-Service vs. Energy Savings Performance Contracts
This document clarifies the differences between two popular energy service contracts: energy-as-a-service and energy savings performance contracts (ESPCs).
Finance and Resilience
The Finance and Resilience Roadmap is designed to help commercial building owners develop a plan for measuring, managing, and mitigating resilience risk. It is the result of the Department of Energy's Finance and Resilience Initiative, which brings together leading experts from finance, insurance, real estate, and other fields to foster clarity and collaboration on emerging reliability issues and how they affect energy and financial performance in buildings.
Financing for Resilience with Commercial PACE
This toolkit provides an overview of commercial property assessed clean energy (CPACE) financing to help building owners, operators, and occupants improve durability in their facilities.
Discover information, case studies, and other resources related to project financing here.
Other Resources
This section contains resources broadly related to financing energy reduction and other generation projects.
U.S. DOE | Funding & Financing
This webpage provides an introduction to a number of grant, loan, and financing programs supported by DOE.
DSIRE Database
This searchable database provides information on incentives and policies that support energy reduction in the U.S.
PACE Programs Near You
This graphic and database provides a full listing of all residential and commercial PACE programs across the U.S.