Skip to main content
Add as a preferred source on Google

ESCOS: Potential Funding Source for Sustainable Schools

  • 09/01/16

“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

  • Photo courtesy of Kraus-Anderson

    Minnesota District Completes $49.7M Addition, Renovation Project

    St. Paul Public Schools in St. Paul, Minn., recently announced the completion of a $49.7-million addition and remodeling project at two district schools, according to a news release.

  • College of the Desert Hits Construction Milestone on New Campus

    College of the Desert recently announced that the construction of its new Palm Springs Campus in Palm Springs, Calif., recently reached a major construction milestone, according to a news release. The college is partnering with general contractor C.W. Driver Companies, which recently “topped out” the facility by placing the final beam in its structure.

  • Northeastern University Breaks Ground on New Housing Community

    Northeastern University recently announced the groundbreaking of a new student housing community on its campus in Boston, Mass., according to a news release. The university is partnering with American Campus Communities (ACC) for development of the project, which will have the capacity for 1,200 students and has a scheduled completion date of fall 2028.

  • Harvard Announces Replacement Facility for Native American Program

    Harvard University in Cambridge, Mass., recently announced that construction will begin this spring on a new home for its Native American Program, according to university news. The 6,500-square-foot, all-electric building will stand three stories and serve as the central hub for the Harvard University Native American Program (HUNAP).