Did Your Energy Efficiency Project Get Lost in Translation? Financial Speak for Facility Managers

Do you have energy efficiency projects that have been postponed or rejected due to capital budget limitations, other projects with better returns, or lack of expertise? Yet, from your perspective the project should be a “no brainer” due to the immediate positive cash flows generated by the energy savings. Understanding your organization’s decision-making process, being able to effectively speak to the benefit of improved cash flow, and improving your financial literacy can greatly increase your probability of receiving approval for a project.

ENERGY STAR Healthcare Energy Savings Financial Analysis Calculators

EPA’s ENERGY STAR Healthcare Energy Savings Financial Analysis Calculators are designed to calculate the financial impact of improved energy performance for your organization. Organizations that reduce energy expenses and improve energy performance increase both their bottom line and their market valuation. These calculators are specially designed to help healthcare organizations quantify cumulative savings and communicate the value of their savings by translating it into metrics that resonate with key decision makers.

Introduction to the Cash Flow Opportunity Calculator Spreadsheet

This interactive, self-guided presentation shows how to use operating budgets as a potential "source of revenue" to pay for energy efficiency projects. The Cash Flow Opportunity (CFO) Calculator is an interactive calculator that helps quantify the cost of delaying investment in upgrades by addressing three critical questions: How much new energy efficiency equipment can be purchased from the anticipated savings; should this equipment purchase be financed now, or is it better to wait and use cash from a future budget; and is money being lost by waiting for a lower interest rate?

Easy Access to Energy Improvement Funds in the Public Sector

This two-page primer provides an overview of two of the most popular mechanisms for financing energy efficiency projects in the public sector: performance contracts and tax-exempt lease-purchase agreements. Both mechanisms provide effective alternatives to traditional debt financing, and both may allow you to pay for energy efficiency upgrades by using money that is already set aside in your utility operating budget – allowing you to draw on dollars saved from future energy bills to pay for new, energy-efficient equipment and projects today.

Finding Money for Your Energy Efficiency Projects

This 14-page paper describes how performance contracts and tax-exempt lease-purchase agreements may offer you a practical solution when no money is available in the current budget for further improvements. It equips you to persuade the decision-makers within your school district, city, county, community college, university, or state that implementing energy efficiency upgrades is a good business decision and should be done as soon as possible.

Financial Value Calculator

The ENERGY STAR Financial Value Calculator helps you quantify the value of improvements in energy efficiency to your organization. The calculator uses the prevailing price/earnings ratio to estimate the market value of increased earnings that can result from increased energy efficiency.

Building Upgrade Value Calculator

Use the Building Upgrade Value Calculator (BUVC) to analyze the financial value of efficiency-related capital investments in commercial real estate. By evaluating the expected change in tenant contributions for recoverable owner expenses under a variety of lease types (full service gross, modified gross, triple net – each with customizable tenant-level parameters), this tool allows you to calculate the costs and benefits of base building energy efficiency measures for both the owner and each tenant.

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