One of the most significant hurdles facility managers must overcome when proposing energy efficiency or water conservation projects is meeting the C-suite’s arbitrary capital investment requirements.
Even though energy efficiency upgrades save money, if the payback period is not met, or the ROI hurdle rate not achieved, the needed project often remains on the wish list.
To achieve the immediate financial benefits of reducing energy waste and improving efficiencies, the upfront cost hurdle of these projects had to be overcome. This was done in 2008 with the creation of a financing mechanism known as Property Assessed Clean Energy (PACE). It allows commercial and industrial facilities to fund energy efficiency upgrades with the same financing mechanism used for years to pay for streets, sidewalks, sewers and other improvements.
“Reducing wasted energy and increasing efficiency is possible once the upfront financial barriers are overcome. PACE has a proven track record of launching projects that would not have been considered when the tool was unavailable.” Scott Ringlein
PACE is a powerful tool when facility managers can effectively illustrate the benefits of this financing option to the company’s senior executives, especially the CFO. What these decision makers need to understand is that PACE effectively leverages energy savings – money that is already approved in the budget – to fund projects that improve energy efficiencies and upgrade outdated technologies.
At the upcoming National Facility Managers and Technology event in Las Vegas, facility managers will get valuable information that will enable them explain PACE to the C-suite. That information will be provided in a presentation by Scott Ringlein, President and CEO of The Energy Alliance Group of North America. Ringlein’s presentation is titled – PACE Financing: A Paradigm Shift in Funding Energy Efficiency and Renewable Energy Projects.
“PACE effectively leverages energy savings – money that is already approved in the budget – to fund projects that improve energy efficiencies and upgrade outdated technologies.”
Because of the complexity of PACE, Ringlein created an initial webcast for those wanting to learn more about this unique financing option. The free webcast titled Eliminate Financial Hurdles with PACE Financing is geared specifically for facility managers and can be accessed by going HERE.
The presentation covers the top benefits of Property Assessed Clean Energy that facility managers should be sharing with their company financial decision makers. The online presentation includes links to several documents helpful in presenting PACE to those controlling the purse strings.
If you’re participating in the Vegas event, be sure to get an introduction to PACE prior to Scott Ringlein’s live presentation by going HERE. If you’re not attending the Vegas event, the webcast will give you the fundamentals for utilizing this financial resource. In addition to the fundamentals of PACE you will have access to the supporting documents at the close of the Eliminate Financial Hurdles with PACE Financing webcast.