Industry Market Trends
Innovative Financing Spurs Pay-for-Performance Energy Efficiency Retrofit
December 31, 2010
Utilizing a progressive financing solution offered by Metrus Energy, defense industry giant BAE Systems' Greenlawn, N.Y. facility will implement approximately $2 million in efficiency measures with repayment based solely on actual realized energy savings. The project, expected save $300,000 in annual energy and operating costs, includes heating and cooling system upgrades, high-efficiency pumps, motors and controls, and other measures that will reduce electric and natural gas consumption. Siemens' Building Technologies Division will be responsible for the project design, installation, and delivery of ongoing maintenance services. Metrus' innovative Efficiency Services Agreement is a pay-for-performance financing solution that allows customers to implement energy efficiency projects without any upfront capital expenditure. Metrus pays for all development and construction costs, and, after the project is operational, the customer uses a portion of the cost savings associated with reduced energy consumption to make service payments to Metrus. Earlier this year, Metrus successfully finalized its first project with BAE Systems at BAE's Merrimack, N.H. facility as part of a $1 million retrofit project. Both projects are backed by Bank of America's 10-year, $20 billion business initiative aimed at funding solutions for climate change. In March, Bank of America was named one of the nation's greenest banks by Banking Technology News.