The four main barriers to implementing energy efficiency and onsite generation are:
- Payback too long
- No capex available
- Commercial Terms
- Internal priorities
(1) and (2) can both be addressed by using a third party (such as www.on-site.energy who fund the measures, enabling items with a payback up to 10 years to be realised. The arrangement is called an Energy Supply Agreement (ESA)
The barriers to ESA in my experience are in (3) and (4), where aligning interests, building confidence and being adaptable on commercial terms are key.
Our ESA is short, written in clear English and is fair. There are no surprises or additional costs and we are flexible to the needs and constraints of the customer. Most ESCO providers are funded by institutions, who fix their criteria (which often don’t suit businesses). Examples are the contract length is too long and “take and pay” clauses which shift all the risk to the customer.