ESCOS: Potential Funding Source for Sustainable Schools

“How can we pay for the energy efficiency improvements?” The answer is funding, which can come from a variety of sources — internal funds, bonding, debt financing, lease or lease-purchase agreements, energy performance contracts, utility incentives and government grants, to name a few. For many schools funding remains the roadblock to implementing energy efficient technologies, and internal funding is not an option.

Leasing or debt financing may provide a workable alternative. In both cases the high up-front costs can be reduced or avoided, and costs can be repaid through the savings that accrue. Another method is perfomance contracts provided by ESCO’s (Energy Service Companies). Typically the ESCO provides a service package that includes the design and engineering, financing, installation and maintenance of the retrofit. Most importantly, ESCO’s provide a guarantee of the energy savings. Schools should also take advantage of the incentives offered by utility companies for the installation of energy efficient equipment. These offers range from equipment rebates, to design assistance, to low-interest loans.

Along with the corporate world, many states have also stepped up to the plate when it comes to financing energy efficient schools. Some states are providing low-interest loans for conservation and renewable resource projects. Others provide state energy tax credits to eligible projects. Also, don’t overlook the many federal agencies offer grants or make financing available to schools for projects that affect energy efficiency. The money is available, the key is finding it.

The most important thing to remember is that being energy efficient does not necessarily translate into significant expenses. When designing new buildings the construction cost trade-offs often allow the architects to incorporate energy-efficient technologies without an increase in cost. When operating existing buildings insulate and weatherstrip, repair cracked windows, close outside doors behind you, plant trees or large shrubs to act as windbreaks or for shade, install low water-use fixture, automate building controls and turn off the lights!

This article originally appeared in the issue of .

Featured

  • Rice University to Build New Student Life Complex

    Rice University in Houston, Texas, recently announced that a groundbreaking ceremony for the upcoming Moody Center Complex for Student Life (MCCSL) will take place on May 8, 2025, according to a university news release. The 75,000-square-foot facility was designed by architecture firm Olson Kundig with Page serving as executive architect, and it has an estimated completion date of fall 2027.

  • Boosting Student Wellness and Safety Through Indoor-Outdoor School Spaces

    Engaging students through facilities designed for indoor and outdoor learning and activities reflects a growing awareness of how children learn and thrive, with educators recognizing the importance of getting outside and disconnecting from technology. And, as today’s youth grapple with the urgent mental health crisis of increased anxiety and loneliness fueled by both the pandemic and technology, along with a related crisis in youth physical health, the wellness benefits of getting outside have never been so palpable.

  • Thomas F. Frist, Jr. College of Medicine

    Established in 1999, the Education Design Showcase is a vehicle for showing off innovative — yet practical — solutions in planning, design, architecture, and construction. Thomas F. Frist, Jr. College of Medicine has been recognized with an EDS 2025 Project of Distinction award in the category of New Construction.

  • Active Learning Classroom

    Striking a Balance: The Keys to Renovating Science Education Buildings for the 21st Century

    The recent renovation of the Durham Science Center at the University of Nebraska-Omaha (UNO) provides a roadmap for facilities managers tasked with balancing budget constraints, modern pedagogical demands, and long-term sustainability.

Digital Edition