With so many different energy solutions available to supplement your existing supply, how do you decide where to invest?
Over half of organizations we surveyed have implemented solutions designed to deliver energy efficiency improvements to their buildings. These include HVAC and energy-efficient lighting. These can offer the clearest and quickest return on investment.
Reassuringly, given its importance, two fifths of organizations say they’ve already adopted wireless sensors and analytics, or BMS/ BAS across at least some of their sites.
While the business case for thermo-electric generation can be extremely compelling, it may not be suitable for all companies. It usually makes the most economic sense for businesses with high thermal loads and where electricity costs are high.
Nearly all companies surveyed were aware that they could get paid for decreasing demand on the grid at times of peak demand. Over one third are already selling excess capacity back to the grid, participating in supply-side incentives or demand-side incentives.
Adoption of onsite renewables can be limited by physical considerations. We expect much wider adoption as these technologies and battery storage continue to mature. Collaboration between companies is likely to help too.
Adopting new energy solutions can require significant investment. While traditional funding options are most prevalent, other methods are starting to be used. These include shared risk models.
Payback financing, for example, is a model where investments are funded by a third party—typically a supplier—and paid for out of ongoing energy savings or increased revenue, reducing the capex burden on the company.
Figure 4: In future, which funding methods for energy investments would you prefer to use?
Reed Intermediate School in Newtown, CT, was using 1,958,098 kWh of electricity a year educating hundreds of fifth- and sixth-grade pupils. Although costs are always a factor, the school’s main motivation for going solar was to become more environmentally friendly. Being financed through a Power Purchase Agreement with the Connecticut Green Bank meant the school had no upfront costs, and benefited from immediate savings on electricity. Overall, Reed Intermediate School reduced energy consumption by 39%—and has offset CO2 emissions equivalent to 196 tons of waste being recycled each year, instead of sent to landfill.
