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!