In recent years, innovations in energy efficiency technology has opened many new avenues to reduce electric consumption in buildings.
But it is hard for building owners to keep up with these developments, analyze which options are most cost effective, and decide how best to invest their money. An increasingly popular method to implement energy efficiency technology is called “energy efficiency as a service.”
A typical arrangement consists of a building owner and a provider striking an agreement that pays for energy efficiency projects. The building owner does not pay anything upfront. The owner makes payments in installments within a certain timeframe. Payments are in the form of savings in energy costs realized from the improvements.
Bentley Mills, a manufacturer of commercial carpet products, employed this technique to fund a $1.5 million energy efficiency project. The contract stated that over the course of the 8-year term, Bentley would save over 12.8 million kWh. One year after the project was completed, the plant measured a 21% decrease in the kWh per square yard manufactured while increasing sales growth by 9% during the same time.