Pay as you save finance agreements
“We would love to make energy savings, but we don’t have the budget to implement the projects”
This is a common statement, which we can all relate to; it is sometimes easier to continue paying the monthly electricity bill than find the Capital Expenditure to make the energy efficiency project happen… and there lays the dilemma.
If “we don’t have the budget” we should switch the lights off!
The point here is that the Revenue Budget is available (the electricity bill is being paid every month), but no CapEx budget is available. So, why not use the revenue budget to pay for the implementation of the energy efficiency lighting project out of the guaranteed savings?
The benefits delivered by a Pay-As-You-Save finance agreement are detailed within every CherryLux audit proposal. In some cases this is a Carbon Trust Loan and in some cases a commercial lease agreement. In either case the savings will fund the monthly or quarterly payments, with no need for CapEx.
Save energy, reduce maintenance and improve cashflow
In a recent project within a distribution centre; monthly savings of £11,000 per month were delivered by a retrofit project funded by a commercial lease of £7,000 per month. So, not only were substantial savings delivered, light levels improved, but also that company had an additional £4,000 in the bank each month.