Public-Private Partnership for Financing K-12 Efficiency
Better Buildings Challenge Financial Ally, Metrus Energy, recently closed a $1.1 million efficiency-as-a-service deal with Jack Hebrew Academy in Bryn Mawr, Pennsylvania, that will be completed later in 2017. The project includes HVAC upgrades, building automation, hot water controls, and interior lighting retrofits that are expected to reduce energy consumption by more than 25 percent in the multi-building campus. A portion of the deal was funded through the State of Pennsylvania’s Green Energy Loan Fund (GELF), which finances energy conservation and efficiency improvements for buildings across the state. GELF is managed by The Reinvestment Fund and was established by the Pennsylvania Department of Environmental Protection (PADEP) with support from the U.S. Department of Energy’s State Energy Program.
Many state and local governments have established similar loan programs that specifically target energy efficiency and clean energy projects within their borders. These programs can often provide lower rates and/or more flexible terms than traditional private sector lenders, and they may operate in communities where loans are less accessible. They include “internal” loan programs that fund only projects in government facilities, as well as “external” programs that serve the broader community, including private sector organizations. More information on state and local loan programs is available from the Department of Energy Revolving Loan Funds page. You can find specific information about loan programs in your region by searching for “Loan” in the Database of State Incentives for Renewable Energy.
This project was financed by Metrus with an efficiency services agreement (ESA), also sometimes referred to as an energy services agreement. ESAs are an increasingly popular pay-for-performance, off-balance sheet financing solution that allow customers to implement energy and water efficiency projects with no upfront capital expenditure. The ESA provider pays for project development, construction, and maintenance costs. Once a project is operational, the customer makes service payments that are based on actual energy savings, resulting in immediate reduced operating expenses. To learn more, visit Metrus Energy’s website or the ESA fact sheet on the Better Buildings Financing Navigator.More Less