Upfront costs are a major barrier to implementing energy efficiency projects. Despite demonstrated energy cost savings of at least 20-30% and the low risk nature of investments in energy efficiency, many efficiency projects do not receive the funding required for implementation. This is due, in part, to poor market information and education regarding financing solutions. Many customers and vendors have an incomplete understanding of the financing options available and how they compare with one another.
To address this problem, the Department of Energy has developed the Better Buildings Financing Navigator, an online tool that helps public and private sector organizations find financing solutions for energy efficiency projects. The Navigator is now available at https://betterbuildingssolutioncenter.energy.gov/financing-navigator.
Through the Navigator, you can:
· Learn the basics of the energy efficiency financing market: Not sure where to start on energy efficiency financing? The Explore page provides information on the different financing options—ranging from leases and loans to ESAs, PACE, on-bill, and more—so you can easily see how they compare to one another.
· Explore and compare financing options, and find the ones that are a best fit for your organization: Have a specific project in mind? Answer a few simple questions to see which financing options might be a fit for your project, compare pros and cons, and read more about those that interest you. You can easily navigate white papers, technical research, and advice collected from industry to get the information you need.
· Connect directly with Financial Allies who can provide those options: Ready to speak with a financier about a specific financing option or project? Use the Connect with Financial Allies page to access the larger Better Buildings Challenge Financial Ally community, which includes banks and lenders that are committed to making bold financial investments in energy efficiency and are actively pursuing new opportunities to finance projects.
The Department of Energy worked with dozens of Better Buildings partners, affiliates, and advisors to develop the Navigator. We would like to extend a special thanks to the Financial Allies—market-leading financing companies that supported the development of the Navigator and have collectively funded more than $5.4 billion in energy efficiency projects since 2012.
The Department of Energy welcomes your feedback as well as opportunities for partnership. Please email us at BetterBuildings@ee.doe.gov to let us know what you think.
by Holt Mountcastle and Joe Indvik, JDM Associates