ABSTRACT
This chapter aims to help facility managers understand and apply the financial arrangements available to them. Hopefully, this approach will increase the implementation rate of good energy management projects, which would have otherwise been cancelled or postponed due to lack of funds. Most facility managers agree that energy management projects (EMPs) are good investments. Generally, EMPs reduce operational costs, have a low risk/reward ratio, usually improve productivity, and even have been shown to improve a firm’s stock price. Alternative finance arrangements can overcome the initial cost obstacle, allowing firms to implement more EMPs. However, many facility managers are either unaware or have difficulty understanding the variety of a financial arrangements available to them. Consider a small company, “PizzaCo,” that makes frozen pizzas and a distributes them regionally. PizzaCo uses an old delivery truck that breaks down frequently and is inefficient.
