Energy Efficiency Financing Foundations
Energy Efficiency Financing Foundations:
A Training for Public Sector Facilities Managers and Finance Officers
The Energy Efficiency Financing Foundations training curriculum consists of 6 primary modules designed to help public-sector facilities managers and finance officers speak the same language when it comes to financing energy efficiency improvements in publicly-owned buildings. The goal of this training is to demystify building improvement financing strategies so public-sector decision makers can take advantage of financing with confidence and choose the best option to help them move energy projects forward.
The target audience for the training is public-sector energy professionals, facility managers, finance officers, and procurement staff working to improve the energy performance of buildings and the health of occupants. The training may also be helpful to energy program staff seeking to promote public-sector energy efficiency projects across their jurisdictions. Learning objectives for this training include:
- Understand key language and concepts in public-sector building improvements and public-sector financing
- Review the basics of different funding and financing options
- Compare the pros and cons of different financing solutions in different scenarios
- Anticipate issues that may arise when selecting and implementing financing solutions
- Determine what questions to ask of financing providers and project vendors
- Communicate the value of financing solutions to executive decision makers and external partners
An intro module (~10 minutes; video here) provides an overview of the content of the course, highlighting the topics covered in each of the six primary trainings. It also reviews the course format and describes how to access additional resources on the topics covered.
The training is available at no cost to the audience. Each module is approximately 60 minutes long, and the entire training can be completed in less than one day. Please submit any feedback or questions to Greg Leventis at [email protected].
This training was funded by the U.S. Department of Energy’s State Energy Program, created by experts from Berkeley National Lab with production assistance from the National Renewable Energy Laboratory.
Modules
This module (video here; slides here) covers important terms and concepts related to building structures, components, and systems that impact total energy usage. It reviews various types of building upgrades that can help reduce total energy costs and illustrates certain contexts in which different kinds of upgrades may be most beneficial. It also provides an overview of various tools that can help public sector building owners analyze their energy usage and determine what kinds of upgrades to consider.
This module (video here; slides here) compares financing (borrowing funds) and funding (using budget or grant funds) strategies that may be used to pay for energy efficiency projects. The module reviews some of the pros and cons of funding projects out of an organization’s own budgetary resources versus taking on third-party financing to support these investments. It covers the basic elements of financing at a high level and explains how financing strategies may help facilitate project approval. Finally, the module describes some of the challenges and barriers that can arise in the use of financing, particularly in the public sector.
This module (video here; slides here) reviews some of the more traditional financing structures, such as loans, leases, and bonds, which can be used to support energy efficiency projects. These types of financing products are in widespread use for many different purposes and are not specifically designed to cover energy efficiency, but they are often used in the energy space, as well. The module introduces and explains the basics of these financing products and certain subcategories within them, weighs the pros and cons of each product, and compares and contrasts the products against each other in the context of energy efficiency.
This module (video here; slides here) reviews certain specialized financing products designed specifically to support energy efficiency projects. These products have structural features that are generally found only in the energy space, such as the ability to make repayments directly on a utility bill, the inclusion of an energy savings guarantee, or payments that are structured as a percentage of energy savings actually achieved. The module examines how these products are used in the context of public sector energy efficiency projects, compares these specialized products against each other, and then compares them with the more traditional financing products examined in Module 3.
This module (video here; slides here) discusses what happens after a financing contract is signed. This includes the mechanics of making repayments under different financing models, as well as other ongoing activities like maintenance and savings measurement. The module offers sample repayment arrangements that help illustrate financing features that may play out over time, given the choice of one type of product or another. It also discusses financing contract termination and post-contract options.
This module (video here; slides here) zooms out to examine how financing fits into the broader context of processes and partnerships needed to move energy efficiency projects forward. It highlights considerations when choosing among project vendors and financing providers, providing suggestions of questions to ask during the selection process. It reviews financing features that can help shore up internal buy-in for energy efficiency projects and discusses strategies for working with external public and quasi-public partners to access capital markets and secure financing.
Contact us
For questions, please contact Greg Leventis at [email protected].