07 Nov '11, 5pm

Lime Energy: Delivering Energy Efficiency: Filed under: Energy News

Lime Energy: Delivering Energy Efficiency: Filed under: Energy News

The high upfront cost of efficient buildings (and efficiency in general) is more than offset by the significant long term rewards, as you can see from the McKinsey chart below. Despite the long term benefits, the upfront cost is often a barrier, especially to government entities in today's tight budgetary environment. Performance contracting offers them a way to square the circle between the long term budget benefits of efficient buildings and the often significant capital cost. This works by funding the capital improvement with debt secured by future energy savings. An Energy Service Company (ESCO) guarantees a certain level of energy savings and performance (hence the term Performance Contracting.) Yet performance contracting comes at a cost. No ESCO puts its balance sheet behind a promise of energy savings solely out of a desire to green the economy. That ESCO has a cos...

Full article: http://www.altenergystocks.com/archives/2011/11/lime_ener...

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