Whether you are looking at implementing an energy efficiency plan or would just like ways to lower the cost of your operations, we believe a financial plan is a necessity. How are you going to get to your end goal? Who will help you get there? What steps do you need to take? As energy efficiency finance suppliers, we created the seven step plan. Feel free to use this blog as your very own template.
Step 1: Take budget restrictions into account
Optimum energy savings vs. the investment required will need to be taken into account. What is your projected annual energy expenditure? What potential savings could you make? What will inaction cost you?
Step 2: What will a financing partner offer you?
You’ve decided investment into your energy efficiency plan is important. But who can help you? Yes, you can put the cash up front but this could eat into critical capital. Instead, understand how finance can help you, from spreading payments and conserving capital to flexible payment profiles.
Step 3: Figure out what type of finance is right for you
Did you know you can use hire purchase, finance leases and operating leases to manage your energy efficiency now? These options aren’t just for larger purchases anymore. Here at Capitas, we’ve also introduced an Energy Services Agreement specifically for this type of financing.
Step 4: Look at other companies
After ESOS was introduced in 2014, many larger businesses have legally had to review their energy expenditure. But the savings they have already seen mean that there are discussions to implement something similar for medium and smaller sized UK businesses. With the estimated savings around 18-25% for SMEs alone, it’s worth looking at what other companies like yours have invested in.
Step 5: Address your financial concerns
You might think you have enough capital to make it work before you see the energy savings, you might prefer borrowing from the bank if they’ll invest, but there are more options available to you. Look for financing partners that specialise in this energy-efficiency financing and you’ll find more flexible, bespoke plans that will suit your business.
Step 6: Confirm 4 things your financial partner needs to be able to do
- Understand your energy efficient project and give you a bespoke solution
- Demonstrate that they can support your needs
- Finance all your energy efficiency equipment
- Give you a quick credit decision
Step 7: Find out more about how this process works
Here we’ve given a brief outline of the steps you can take to actually implement an energy efficiency plan in your business, but there is so much more to go through to make sure you are getting value from your investment.
That’s why step 7 is to download our Management Guide to Financing Energy Efficiency Investments and find out more about each step in greater detail.