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Self-funded building upgrades from energy savings through Ecosave Services Agreement [VIDEO case study]

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Imagine if the building services equipment in your facility can be optimised or replaced for improved building performance, greater occupancy comfort, reduced energy costs and lower maintenance expenses. Imagine if such a project can be self-funded entirely from future energy savings and that project implementation requires zero up front capital and zero debt.

Now imagine partnering with a trusted Tier-1 Energy Services Company  (ESCO) over a number of years via a services agreement to deliver such an outcome; that ESCO would be responsible and accountable to implement a performance-based, end-to-end service, and only gets paid for the savings they generate for your building or portfolio (services include: engineering design, installation, commissioning, measurement and verification of savings, performance monitoring, continuous commissioning and ongoing asset maintenance).

Imagine only paying for the savings your ESCO partner achieves, receiving a cheque if they don’t achieve the performance benchmark and potentially an even bigger cheque if they overachieve the savings guarantee!

Can you imagine all of this, in addition to having no maintenance obligations on the upgraded equipment?

Watch this video to discover a real life example of how Ecosave has helped a not-for-profit client realise this ‘dream’.

 

— Video transcript —

No money down, self-funded building upgrades through energy savings with Ecosave

Everyday, millions of us file into our offices, sit in front of our computers and get to work. But over the course of those eight hours, most of us are not aware of the carbon footprint our work spaces leave on the environment. Energy efficiency experts are going on the record to explain the impact.

Marcelo Roucco (CEO, Ecosave Inc.):
“Most people can only think of what they can see, things like the lights that’s over their heads, the equipment plugged into the wall; but most of the energy is consumed by the things they do not see. Things like the fans, the motors, the heating and cooling systems, the boilers – all of these things consumes a lot of energy.”

“In your average office building, it takes 3.4 Megawatt hours (MWh) of electricity a year to keep someone comfortable and working. Now when you multiply this by the billions of people who go to work everyday, and on top of that you have more energy intensive industries like manufacturing and hospital systems operating 24/7, it is no wonder the world can no longer cope with the amount of greenhouse gas emissions we are putting into the atmosphere.”

Coupled with the carbon footprint, is the cost. Paying for these resources, costs building owners millions of dollars every year. The combination of increased environmental awareness and expensive overhead, is forcing decision makers to operate more efficiently.

Brad Molotsky (Partner Duane Morris, LLP) explains:
“I sit on the board of a non-profit. The building we inhabit is about 125,000 square feet and it’s a community centre. The building was built 25 years ago and so the building is starting to show wear and tear; and, our staff in the building are not energy engineers, they are social services people – you know, good folks trying to do the right thing. And so the facilities people in the building, myself included, got together one day and asked ‘what is that’s missing in the building when we look at the building needing to be updated and maintained?’.

“After we essentially interviewed the marketplace, we interviewed about 4-5 different companies, we settled on Ecosave because we liked their program, we liked the people and their expertise. Ecosave invested their own money into our building and they get paid back out of savings. If there are no savings, they don’t get paid.”

“Our experience over at least the first two years of the contract, they said we’d save 30%, we saved 40% on our energy consumption.”

“We didn’t have the capability to even measure the savings, let alone purchase the equipment; massively-good deployment on a virtuous cycle – that is what Ecosave has been able to do for us.”

Marcelo Roucco:

“The types of people we tend to work with are:

 

For decision makers who are looking to reduce their carbon footprint and save money, there is no better partner than Ecosave.Ecosave achieves savings by optimising or replacing existing equipment within a building. So building owners get upgrades and tenants get reductions in their energy bills and employees feel pride that their employers are working hard to save the planet.

And best of all, Ecosave does all of this without requiring any capital or debt, by funding it through an off-balance-sheet service agreement.

Marcelo Roucco:

We developed the Ecosave Services Agreement. Its a shared savings model. For example if we were saving a client $100,000 off their energy bill every year, the client might keep $30,000 and Ecosave might keep $70,000 for a number of years. But Ecosave would actually fund and own the equipment that’s in that building. And the client is paying for the savings they are getting. If Ecosave were to fall short, we would write a cheque for the difference. If Ecosave saves more, we would share that with the client – three-quarters for them, one quarter for us – so we all have an incentive to save more. But essentially the client is only paying for the savings we achieve.”

“We developed our own software platform called Ecosave Watch. And that actually sits on top all the building systems that the clients have. So by being able to track that through a software platform very easily and comparing it to what the client building was consuming before the work was done we are able to easily tell what real savings have been achieved.”

Brad Molotsky

“The skillset of the people at Ecosave to look at that system and to look at the interrelationship between the people and the energy system that in the building is kind of the magic that Ecosave brings to the table.”

 

Marcelo Roucco:

Ecosave has been saving energy in about 3,500 buildings over 16 years. So this experience we bring in allows us to achieve in a range of 25 – 50% energy savings in every building we touch. We also like where we can to produce green energy into a building to cover what still remains, that needs to be used. When we put all these things together our goal is always to turn every building carbon neutral.

 

The client wins and the planet wins with Ecosave. To learn more, call or click today.

 

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