Most commercial real estate owners have an untapped asset that could be utilized to make a property more energy efficient, sustainable and ultimately more profitable!
According to the U.S. Department of Energy, “The average commercial building wastes 30 percent of the energy it consumes. That means that if you haven’t done anything to save energy, chances are you’ll find many opportunities to do so.”
This waste represents money already in the budget that could be put to a more productive use, representing a significant profit opportunity in most commercial buildings. The problem is it’s often given secondary consideration, and only viewed as essential when all the associated costs are added up.
“Most building owners don’t realize how inefficient their building has become over time or how much wasted energy is hindering their profitability.” Scott Ringlein, EAG, CEO
Energy waste tends to creep into buildings and businesses as technology ages and newer ones become more efficient. A significant problem is the fact that outdated technologies tend to develop associated and hidden long term costs that multiply as they age:
“A strong body of literature demonstrates that substantial productivity gains can accrue from comprehensive energy efficiency improvements” Building Efficiency Initiative
How to Utilize the Hidden Asset Currently Funding Wasted Energy
With an understanding of the long term costs associated with energy inefficient and outdated technologies, a financing option known as Property Assessed Clean Energy (PACE) was initially developed and approved in California in 2008. It is now being used in over 32 states and the District of Columbia in the U.S., and is also being enacted in other countries as well.
PACE allows a property owner to pay for energy efficiency and water conservation upgrades with a special assessment on his property taxes – similar to those levied for streets, sidewalks, sewers and other improvements. Unlike traditional methods of financing, PACE provides extended terms – 20 years or more – at fixed interest rates. This makes energy upgrades with relatively long payback periods such as solar and geothermal financially justified.
The PACE financing option allows owners and tenants of commercial real estate to utilize the hidden asset represented by the cumulative cost of wasted energy. When the PACE financing option is understood by decision makers a common response is: “It will cost me more money if I continue using the equipment we currently have rather than upgrading to a highly energy efficient operation!”
The problem is most decision makers haven’t even heard about the PACE and if they have, they haven’t taken the time to fully understand what it can do for them.
Webcast Details the Top 10 Benefits of the PACE Strategy!
With the goal of speeding up the learning curve associated with Property Assessed Clean Energy, EAG’s CEO Scott Ringlein created an online presentation describing the Top 10 reasons why a PACE strategyis a powerful tool for any business with the goal of increased profitability and productivity.
A short list of the top 10 benefits explained in detail during the free webcast includes:
The webcast is geared towards facility managers but will prove valuable to anyone involved in planning, financing or approving building and business upgrade projects. At the end of the presentation each participant will be able to instantly download a 16 page document detailing how a PACE strategy can be beneficial to:
To access the free webcast simply click the registration button below:
Vegas Event Participants Learn from EAG’s CEO, Scott Ringlein
At next months National Facilities Management and Technology event in Las Vegas, facility managers will learn valuable information that will empower them to use Property Assessed Clean Energy for future efficiency upgrades.
The information will be provided during a presentation by Scott Ringlein, President and CEO of The Energy Alliance Group of North America. Ringlein’s presentation is titled – PACE Financing: A Paradigm Shift in Funding Energy Efficiency and Renewable Energy Projects.