City Projects in Energy Efficiency and Conservation
Funding
Funding is important both for municipal energy projects and for residential and commercial energy projects that are in the best interests of the community. The California Energy Commission's very low interest loans can help finance your energy efficiency projects.
When exploring ways to provide funding for residential and commercial projects, consider some of the new programs being explored by other local governments, including the amortization of up-front costs. Check out rebates being offered to local governments as well.
Approval
When attempting to get approval for an energy project in your community, the first step is to understand the internal investment criteria of the municipality, often quantified in terms of the rate of return on investment (RRI). Use this information to weigh the cost-benefit of potential projects. Whenever possible, calculate the life-cycle cost, not just up-front cost, since this can be misleading. Assess the life-cycle cost and relative net present value of projects so that the cost of capital and the tradeoffs between investment options can be fully identified.
Explore creative funding strategies, such as federal and state government and utility incentive programs as well as local initiatives that build energy efficiency into the tax code. To secure rebates and grants before a project is fully implemented, carefully align the project to meet program requirements and then establish open communications with the local utility or authorizing government agency to facilitate approval. When working with contractors, discuss how performance contracts or performance guarantees might reduce first costs or lower the risk of investment by tying payment to end results – usually measured in terms of cost reduction or utility meter readings.
When articulating the benefits of an energy project to internal stakeholders, speak dollars rather than kilowatts. Mention intangible financial benefits like increases in worker productivity and positive public relations stemming from environmental leadership.
Examples
Read our Local Governments Best Practice Guide for ideas on how to fund your energy projects.