- If a company’s financial team has to pay for facility upgrades projects with existing cash, or traditionally-financed debt, the approval rate is dismally low (2% by some measures). The frequent result of postponing this work is production downtime and costly and on-going repairs.
- Countless studies describe the benefits of “green” and energy efficiency facility upgrades. These include improved productivity, employee satisfaction, increased building value, etc. Other key benefits include reduced maintenance and end-of-life equipment costs. It’s also important to highlight any reduction in maintenance or end of life replacement costs.
- Energy efficiency projects can create value in other areas. Improved lighting in a manufacturing setting has been shown to improve productivity as well as save energy. For many business owners, it’s the “ancillary” financing benefits that are key. This is especially true for businesses where environmental comfort levels impact revenue.For example, membership in health clubs is heavily influenced by the environment. Because of a more comfortable environment, upgraded lighting and HVAC systems often result in increased membership, of which the financial benefits far outweigh the bottom line impact of reduced operating expenses. These are more reasons for the financial decision makers to say yes!
- It’s important to consider all options that don’t require up-front cash. These can include rebates, vendor financing, energy specific financing, leasing, tax and provider incentives or some of the other strategies outlined below.