According to this article in BizJournal, companies are talking the talk, but not yet walking the walk on energy efficiency.
"The Johnson Controls Energy Efficiency Indicator survey found that nearly 72 percent of organizations are paying more attention to energy efficiency than they were just a year ago. However, the percentage of companies expecting to make energy efficiency improvements, as well as their planned investment over the next year, has remained constant."
With a focus quarter-to-quarter capability, what company has the incentive to make investments now for 10-year payback projects? Once we start seeing energy solutions that provide a short-term payback, we'll start to see this 72% of organizations get on board.
Some solar companies have this figured out. With the help of venture capitalists, solar companies willing to front the capital expenditure can recover investment over the long term from companies that are interested in solar, but don't want to wait for years to get their money back. Under these agreements, companies can continue to pay their projected electric bill, as usual, but under a power purchase agreement with a solar company rather than to the utility. The solar company then constructs and maintains solar panels on the roof, and take on the responsibility of delivering a reliable mix of solar and grid power to the company. In the long term, the solar company is betting that it can provide power much more cheaply than the utility can, and sell some back to the grid for a profit, and thus get a return on their investment, enough to pay back the VC and make a profit for themselves. The owner then can claim to be green, and hedge against the possibility of rising future electricity costs. It's brilliant.
Similar creative ways to finance renewables/energy efficiency that satisifies the myopic shareholder as well as the long-term investor could be the key to pushing energy efficiency to the next level.
Monday, April 14, 2008
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1 comment:
Very interesting! Do you have a list of solar companies that are doing this? I imagine most (if not all) of them are out west where the cost of electricity is relatively expensive. In my own little corner of the world here, I can say much more thought is being given to energy efficiency. Heating costs have nearly doubled since last winter, and we are in the process of developing an insulation system for our new welding shop that will eventually be offered as an option with our buildings. Thought is also being given to waste heat recovery and even solar energy collection, whether for PV or heat. It's very encouraging!
By the way, "Hi Lori!" :) Long time, no talk! Hope all is well with you and Robin! Drop me a line sometime!!
-=Glen
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