It’s a Loan… It’s a Lease…It’s an Energy Service Agreement!

Much like the beloved Superman (ok-we do love our approach), an energy service agreement (ESA) is often misunderstood, yet always there to save you (energy). An ESA is a funding mechanism for your complete energy systems: HVAC, lighting, controls, and onsite clean generation. At first glance, ESA may seem like a loan or a capital lease. It is neither!

Energy Service Agreement:

• It is an off-balance sheet transaction. You do not own the asset or carry it on your balance sheet.
• Prevents monthly service bills, including preventative routine and emergency maintenance.
• It is structured to deliver energy savings. RENEW will estimate energy savings based on an energy audit to show the project’s potential. However, your payment will be based on the energy savings confirmed once the system is operational.

Unlike a lease or a loan, which are on a balance sheet and do not include maintenance, and may not deliver energy savings, the service agreement provides all of the above and then some:

• Executing an energy service agreement is fast. Once a professional energy team surveys the project (we can recommend one), you review a simple service agreement contract, and RENEW will fund the project.
• Executing a service agreement frees up your capital budget for your other priorities. Allowing you to focus on growing your core business.
• Executing a service agreement positively affects your net cash flows.
• And finally, executing a service agreement means flexibility. Perhaps you buy another building or look at additional efficiency measures. With a one-page supplement to your existing ESA, you can have those new lights, HVAC, and controls for your new building while reducing your operating expense!

The RENEW’s ESA allows businesses to focus on what they do best while ensuring that their facilities are performing at their peak with brand-new, high-efficiency equipment. In this current climate of cost control and resource allocation, the energy service agreement is the perfect solution to help businesses meet sustainability goals and keep facilities in top condition.