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

  • Can AI Help Build Stronger Communities in Student Housing?

    Student housing success is shifting from operational performance to student experience, with belonging now at the center. A recent 2025 report underscores a growing emphasis on student well-being, community, and engagement, signaling that expectations now extend beyond logistics to ensure students feel supported in their living environments. AI is enabling that shift by reducing administrative workload and giving teams more time to focus on meaningful student engagement.

  • Philadelphia Middle School Facility Earns LEED Gold Certification

    The Alternative Middle Years (AMY) at James Martin Middle School in Philadelphia, Penn., recently received a LEED Gold certification from the U.S. Green Building Council, according to a news release. The School District of Pennsylvania partnered with KSS Architects on the project.

  • Tennessee Middle School Completes Health, Life Safety Renovations

    The Giles County Board of Education in Pulaski, Tenn., recently announced that a series of renovation projects has been completed at Bridgeforth Middle School, according to a news release. The district partnered with Wold Architects & Engineers and Brindley Construction to modernize building systems at one of the district’s oldest schools.

  • Virginia Tech Tops Out New College of Engineering Building

    Virginia Tech in Blacksburg, Va., recently celebrated the topping out of Mitchell Hall, which will soon stand as the largest College of Engineering building on campus, according to a news release. The university partnered with Skanska on the 285,500-square-foot facility, which has an expected completion date of winter 2028.