We all know Energy Projects are very important to our economy and our environment. I am proud to say that with energy conservation projects—the more we do, the better it is for the environment (this is a rare profession). So, what can we do to increase the number of projects that are implemented? Well, the number one project “killer” is… You guessed it: Lack of Funding. So, this blog is all about solutions to that problem.
Many projects must be financed to get approval because most organizations (like most families) do not have cash just lying around so that they can accomplish all tasks at one time. Your energy project may be one of many potential projects from which a CFO must choose only a few to implement. If you can make your deal so that it has positive cash flow, you can “stand-out” from the other projects and become the CFO’s “new best friend.” With energy saving projects, another selling point is to determine the dollars that will be wasted with the “do nothing option.” Doing nothing is the equivalent of the CFO burning thousands of dollars each month—which is exactly what is happening. These dollars are “easy profit” dollars—if you save them; they go directly to the bottom line profit (as opposed to other investments like marketing, sales and advertising—which can have a higher risk of not producing a return).This blog’s purpose is to help you understand the key success factors for structuring a financed energy project, and getting it approved. With your increased confidence in financing energy projects, the authors hope you will get more projects approved, thereby saving more energy and helping our environment.
There are many “correct” ways to assemble and finance an energy management project. The number of possibilities is only limited by one’s creativity. So be flexible and keep searching until you find the “Win-Win” deal for everybody. Don’t close your mind to new ideasafter you have only found the “1st” solution.
