New Tool Helps Companies Find Financing for Energy-Saving Measures
According to Manufacturing Specialist, Dave O’Connell, of TechHelp and Idaho State University, the two biggest objections to moving forward with an energy efficiency project are the upfront costs and simple payback periods that don’t meet an organization’s objectives. As the leader of TechHelp’s Operational Excellence Team, O’Connell has helped many companies explore and implement projects that improve plant efficiency and energy use. According to O’Connell, “Unless an energy efficiency project can be incorporated into a production efficiency project, most never get implemented.”
Recent changes in the energy financing landscape may help more projects get traction. Some financial institutions are seeing the benefit of energy efficiency and are willing to lend based on proven returns. The U.S. Department of Energy (DOE) is introducing a new, web-based financing navigator to help private and public sector organizations discover financing solutions for energy efficiency projects that meet their unique needs. Through the Better Buildings Financing Navigator, building owners, facility and energy managers, and other decision-makers can connect with financiers, including banks and financial institutions, to pursue energy-saving measures.
The new tool allows users to connect to the larger Better Buildings Challenge Financial Ally Community, including banks and lenders that are committed to bold financial investments in energy efficiency and are actively pursuing new opportunities to finance projects. Through the Better Buildings Challenge, 30 of these organizations are partnering with the Energy Department to commit $5.4 billion in financing for energy saving projects, as well as sharing successful strategies that will maximize efficiency over the next decade.