What is the difference between investing in energy projects now, versus investing five years from now?
The first two answers are simple. In five years:
The second part sometimes remains hidden. Right now, energy efficiency is a relatively “new” phenomenon. By new, I mean that building owners, tenants, and the government are finally beginning to prioritize it. Government legislature is promoting the advancement of building performance, to reduce carbon emissions and increase sustainability.
In order to get building owners on board with energy efficiency, the government and utility companies are offering numerous incentives to reduce their energy consumption.
Five years from now, where energy efficiency is a standard across the United States, there won’t be any incentives to invest in reducing waste. Instead, companies will be fined for noncompliance if their buildings do not meet certain standards.
Pepco Gives You 16 Cents per kWh Saved
If you invest in an energy project now, Pepco
(Potomac Electric Power Company) wants to help you pay for it. As long as you choose a project that yields an annual reduction of at least 25,000 kWh, you receive $0.16 per each kWh saved
. That equates to a minimum
return of $4000 on a single building, on top of the savings coming from the ROI of your project in the first place.
This is just one of several rebate offers and rewards programs that Pepco has to offer. And Pepco is not the only utility company with this type of offer, so you should reach out to your utility company to see what they’re offering. Take advantage of this opportunity while its available, because in 5 years no one will be offering as much as they are now.
ESCO Helps You Find Rebates, Tax Deductions, and Grants
Energy Services Company was founded to provide energy savings programs to companies looking for help funding projects. They help end users find available rebates, tax deductions, and grants available to mitigate the cost of investments that will yield savings.
1. Utility Rebates
ESCO works with utility companies like Pepco to help them provide utility rebates to their customers, by designing offers that are beneficial for the providers and for the end users. With ESCO’s help, utility companies can reduce project costs by 30% to 100%
2. EPAct 2005
The Energy Policy Act of 2005 provides tax reductions of up to $1.80 per square foot
to any buildings investing in efficiency projects. Taxes can be reduces by $0.60 per square foot through lighting, HVAC, and building envelope improvements.
3. Federal Grants
Grants issues by state governments are yet another way to help pay for energy investments. For example, the US DOE’s Energy Efficiency and Conservation Block Grant provided $3.2 billion for efficiency programs.
There are dozens of ways to save energy in your buildings
, and some are more expensive or complicated than others. However, while you’re waiting for improvements to become less expensive you’re actually losing opportunities that could help you fund your projects.
Pepco and ESCO can both help you pay for projects to lower your bills, and you won’t have to pay them back. They’ll pay you back. Get on board now while energy efficiency is being rewarded, instead of waiting until noncompliance is punished.
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