How to Alleviate Commercial-Building Utility Costs
- Jun 03, 2015
Recent estimates show that in the U.S., commercial and industrial building owners spend $290 billion on utility bills—twice as much as residential—whether that be for electricity or natural gas.
Many building owners forgo much-needed energy efficient upgrades due to cost, confusion of the process, and time (proposals and evaluation of how upgrades yield enormous building ROI historically took months).
“Energy experts estimate that approximately 25 percent of all energy in these buildings is wasted due to inefficient equipment, and that means there is $72.5 billion a year in wasted energy and money,” Scott Harmon, CEO of Noesis, told Commercial Property Executive.
Many commercial building owners want to explore efficiency improvements and generate incremental cash flow, but because of a lack of information and budgets, most don’t. That’s why Noesis came up with a solution.
“Our software allows people to access financing to borrow money and finance these building improvements,” he said. “We’ve worked with thousands of buildings and with hundreds of companies to arrange for borrowing. The utilities go down, lenders lend money and owners are happy.”
Noesis partners with companies that sell and install LED lights, building controls, HVAC systems and other energy efficiency equipment, and helps them grow their business through Noesis’ equipment sales and financing software and services.
“We can finance a wide range of building equipment—seven to nine different technologies—air, lighting, solar, hot water heating equipment, which is an enormous market, especially for hotels,” Harmon added.
The way the software works is someone proposes a new piece of equipment and the sales people use that to generate a proposal to modernize the building with an option to finance the purchase through Noesis’ network of lenders. Owners can borrow up to $1 million.
“There is so much money being wasted needlessly,” Harmon concluded. “People who own this property want to hold operating costs down and it’s not atypical for energy to be one of the top three costs. I wish more people knew how much they could save if they modernized equipment and knew they could finance their purchases.”