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Financing and Performance Contracting for Energy Efficient Projects

Course Description: Everywhere, the economy is tight and banks becoming more and more
cautious with regards to lending. However, this doesnt mean that there is no alternative
business funding options for you. The purpose of this course is to discuss general financing
alternatives, the aspects of performance contracting, along with ways to measure and verify
energy savings.

Learning Objectives:
At the completion of this course, you will be able to:
List the main ways to pay for energy efficiency projects, and define the main
characteristics of each
Explain the concept of performance contracting and describe different ways of structuring
the approach, and you will be able to
Explain the importance of measurement and verification to performance contracting

Course Content or Material
1. Introduction
2. Four Basic Ways to Fund
a. Cash
b. Borrow
c. Lease
d. Rebate/Grant/Stimulus
3. Implications
a. Availability
b. Tax and Life Cycle Cost
4. Performance Contracting
a. Definition
b. Benefits versus Risks
c. Four Classic Structures
i. Guaranteed Savings
ii. Shared Savings
iii. Vendor Financing
iv. Chauffage
d. Process
i. Initial business case
ii. Planning
iii. Project approval
iv. Implementation and commissioning
v. Measurement and verification
vi. Settlements and reconciliations
vii. End of contract
5. Comparing Financing Options
6. Basic Financial Considerations
7. Determining Which Option to Choose
8. Summary