Fully funded energy and water savings with Ecosave Services Agreement (ESA)
A low risk financial solution to power energy efficiency
Energy and water efficiency makes good sense, the economic business case stacks up. But capital is not always available to invest in projects that are not core business. Ecosave offers a range of funding solutions to help get your project up and running. Better still, the investment will be cash flow positive, enabling you to still make savings during the repayment stage.
Ecosave specialises in Energy Efficiency retrofit projects and Energy Management Services. We reduce your energy and water consumption and costs through building upgrades and ongoing energy management services. What’s more, we make your investment in resource efficiency return positive cash flow from day one!
How? We offer innovative financing solutions for our energy and water efficiency retrofit projects, including both on-balance sheet and off-balance sheet such as the Ecosave Services Agreement.
Ecosave Services Agreement (ESA)
The ESA is our flagship funding model – offering a completely off-balance sheet Service Agreement with monthly payments that can be funded from the energy savings! The ESA incentivises Ecosave to over-deliver on savings, driving your energy and water bills even further down.
At Ecosave, you could get a fully funded performance-based energy efficiency project requiring no debt or upfront capital investment.
…ESA upgrades will remain off your balance sheet, so the monthly payments can be funded your operational budgets… ESA is structured to be cash flow positive so the savings will be greater than the fees.
How does the ESA work?
- The energy savings are delivered via a ‘Infrastructure-as-a-Service’ contract agreement typically between 5 – 15 years.
- Ecosave will deliver an energy efficiency retrofit upgrade in your facility and fund the full capital cost of the project on your behalf.
- We provide ongoing services to support the upgrade and maintain the savings, including energy management, maintenance, and annual measurement and verification (M&V) of savings.
- Some of the equipment used to achieve the savings will be owned by Ecosave and we will be responsible for operating and maintaining this equipment during the contract.
- At the end of the contract, you have the option to purchase the equipment at agreed market value.
- The ESA savings are guaranteed, so we conduct annual measurement and verification in accordance with the International Performance Measurement and Verification Protocol (IPMVP) to determine if we have over or under delivered savings.
What happens if the savings are not achieved?
- Under the ESA, Ecosave is contracted to deliver savings, and a portion of the monthly fee is tied to our performance. If we under-deliver savings, we will find additional savings at our own cost, or refund enough of your fee to make up the difference.
- If Ecosave over-delivers on savings, you pay for 20% of the extra savings (over and above the guaranteed savings), a win/win incentive for us to over-perform.
- The ESA upgrades will remain off your balance sheet, so the monthly payments can be funded from your operational budgets, right where the savings are being made. Better still, the Ecosave Service Agreement is structured to be cash flow positive so the savings will be greater than the fees.