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

  • A digital silhouette works at a computer, immersed in a glowing, interconnected world

    How Will AI Transform Learning Space Design?

    For years, higher education has designed learning spaces around technology as a tool for display, capture, collaboration, and connectivity. AI changes that equation.

  • University of Arizona Approves New Residence Hall

    The Arizona Board of Regents recently approved plans for a new residence hall at the University of Arizona in Tucson, Ariz., according to a news release. The new facility is scheduled to open in fall 2028 and have the capacity for more than 1,200 students, enforcing a new university expectation that all first-year students live on campus.

  • RIT Saunders College of Business – Lowenthal Hall Addition

    RIT Saunders College of Business – Lowenthal Hall Addition

    Established in 1999, the Education Design Showcase is a vehicle for showing off innovative — yet practical — solutions in planning, design, architecture, and construction. RIT Saunders College of Business's Lowenthal Hall Addition has been recognized with an EDS 2026 Project of Distinction award in the category of New Construction.

  • 144-Year-Old High-School Campus Debuts New Academic Facility

    San Diego High School (SDHS) in San Diego, Calif., recently held a ribbon-cutting ceremony for a new student services and classroom building; the project is part of a larger SDHS Whole Site Modernization project that began in 2022.