ABSTRACT
The general financing options available to finance energy reduction projects are cash purchase, loan, capital or operating lease, performance contracts and pay as you go contracts. Cash purchase is the simplest method of financing energy improvements. Obtaining a loan may require a significant down payment by the business and the owners will have to identify business assets as collateral to secure the loan. Some governmental departments, local councils and local development agencies provide interest-free unsecured loans or grants for energy reduction projects. A performance contract is a service provided by an energy services company (ESCO) where they will identify, implement and fund energy reduction projects within a facility in exchange for a share of the projects future savings. Sometimes, a visual model gives a powerful representation of energy reduction projects and facilitates selecting and prioritising them. This can be achieved by using a simple to use ranking matrix based on the hybrid energy model and implementation strategy.
