Improving your business energy efficiency performance (with NO credit)
Too many times, the CFOs have to refuse an interesting and profitable energy-efficiency project. Why is this happening? Maybe the engineers are not doing their best or maybe the energy efficiency is just not a good business.
Far from it, sometimes the problem is only a threshold value issue. The CFOs care about shareholders’ interest and that means that they require a minimum rate of return on the money invested by the company, often related to the company profit margin. What happens when the energy-efficiency project does not achieve this requirement? The project is usually refused.
It is the same when the CFO says “there is not budget” or “the bank will not grant us a new loan”
But, what about if another company (with a lower profit margin) has credit, has expertise and is interested in energy-efficiency investments? Deal! This kind of company is known as Energy Services Company (ESCO).