What are the best practices for financing energy-saving projects in FM?

The best ways to save energy are below: 1) conduct an energy audit from a professional company/ certified energy auditor and work on suggestions given in a report 2) As the major load is the HVAC system load ( almost 60 % of total energy consumption) so optimizing the HVAC system with the help of advance BMS system will help in reducing major consumption 3) Using occupancy Sensor for lighting controls will help 4) looking for renewable/ sustainable energy sources. The installation of a solar rooftop will help in lower energy cost. 5) having physical rounds on utility floor and typical floor will help to switch off the unutilized equipment. 6) integration of advanced technology will increase accuracy of work and reduce human efforts.

Conduct an energy audit by a third party vendor Most of the energy can be saved in the HVAC systems and the easy way to achieve it by us automation and scheduling the working timing

In addition to energy audit, one should evaluate various alternatives for saving the energy. First of all one should identify the areas where the need for energy is reduced / eliminated. This will help to minimise the investments in energy savings projects. Then identify various methods for serving. Which investment is going give lower payback, which project id feasible in the area should be evaluated.

For me I would start with a benefits management plan. What are the benefits. People want to know reasons and the impact of doing this.

Energy-saving projects in facility management requires careful planning and consideration of various factors: * Conduct an energy audit: Before investing in upgrades, assess current energy consumption & identify areas with the highest potential for savings. * Evaluate costs and benefits meticulously: Calculate total cost, including installation, maintenance, and potential disruptions. Use tools like NPV & IRR to assess financial viability. Compare savings using Utility rates. * Focus high-impact, low-risk projects: Start with upgrades offering quick payback periods and substantial energy savings with minimal disruption. This builds confidence for future projects. * Ensure clear communication and collaboration between stakeholders.

One of the great benefits that has come around in the last 12 months is the Inflation Reduction Act or the IRA. What this federal act allowed for was not for profit entities (such as many healthcare systems) to take advantage of tax incentives to do energy saving projects (such as Solar and Geothermal). You need to have a good tax consultant on board to help you understand all of the documentation requirements around this and the nuances of what qualifies and what doesn’t. But this has proved to be a tremendous opportunity to greenlight projects that otherwise would not have.

As a leader in facility management, navigating a diverse support staff requires a nuanced approach. Traditional authoritarian communication is ineffective; instead, recognizing the humanity of our team, treating them with equal respect, and fostering collaborative problem-solving are vital for productivity. Viewing our team as valuable partners, we encourage ownership and seek their input on solutions, emphasizing their significance in the operational landscape. Highlighting accountability, staying accessible, and adopting a people-centric leadership style reduces the need for micromanagement, creating an effective, motivated, and collaborative work culture. Each team member is essential to the success of facility management

I would look into government rebates and incentives. I would also look into speaking with the building owners and assessing loan options.

Equipment Financing: Financing specifically for purchasing equipment needed for facility management operations, often with the equipment serving as collateral. Lease Financing: Leasing equipment or facilities instead of purchasing outright, providing flexibility and potential tax benefits. Asset-Based Financing Public-Private Partnerships (PPPs): Collaborative arrangements between public and private sectors for funding and managing facility projects, often involving long-term contracts. Energy Performance Contracts (EPCs): Financing energy-efficient upgrades or renovations to facilities through contracts where the cost savings from energy efficiency improvements cover the financing costs.

There are several best practices for financing energy-saving projects in Facility Management (FM), Here are some of the more common ones: PACE (Property Assessed Clean Energy): PACE funding provides funding by tax assessment for deep energy retrofits and energy-conserving measures in new buildings, with no up-front layout of money by an owner. PPA (Power Purchase Agreement): With a PPA, equipment or systems that contribute to energy use are paid for and maintained by a vendor for extended time period. Energy Performance Contract : An EPC is a turnkey service, typically delivered by an energy service company (ESCO).It can provide customers with a comprehensive set of energy efficiency, renewable energy, and distributed generation measures.

When you evaluate costs, also include any potential rebates and what that overall pay back is. For example, if you change lightbulbs to LED although there is a cost upfront overall, you would have savings and energy which would help to eventually pay it off.

maintenance services, security, cleaning, utilities management, and landscaping. To evaluate the cost, it's necessary to consider both direct expenses, such as salaries and equipment, as well as indirect costs like training, insurance, and administrative overhead. Additionally, analyzing the effectiveness and efficiency of these benefits in contributing to the overall management goals is crucial for a comprehensive evaluation.

Explore alternative cheaper and clean energy source, such including solar heating system in the facilities to reduce the cost. Consindering installation of modern power saving equipment's in the building.

As each investment the cost analysis (all life) and yearly savings , van and period return. Never to miss disposal costs, governament bonus, future rules risks.

1. First identify the areas in their increasing order, where energy losses are predominant in the facilities. 2. Analyse the causes(Human Error, Negligence or Ignorance or Machine/Equipment error or inherent issues) and cascade in order of occurrence/loss. 3. Design mitigation route in form of training for personnel and create an awareness of the loss and gains of the mitigation programme. 4. Create an implementation programme that is subjected to continuous improvement. 5. Create an energy loss monitoring team , ensure all process owners are well trained and fully involve in creating solutions to the issue at hand.6. Record gains and improvements within specific periods and continue mitigation process.

No project wins if communication fails, even if it is a success financially. Change is hard for humans, lead them to the conclusion by communicating, getting feedback, answering questions. Dont tell, ask, involve.

FM is to communicate and collaborate with your stakeholders, engaging and informing decision-makers, staff, customers, suppliers, and partners about your energy efficiency goals.

Identifying energy-saving potential often involves conducting an energy audit to assess current consumption patterns, identifying areas of inefficiency, implementing energy-efficient technologies, optimizing operations, and promoting behavioral changes among users. This can apply to various sectors such as residential, commercial, industrial, and transportation.

I think as much as it is important to identify the problems, formulate ideas or solutions, and plan. It is also important to consult stakeholders on the findings before executing. Communicating and collaborating could bring better options to financing the energy project. The project could be simply financed with stakeholders' contribution if its within an expected budget.

An example is to do a detailed ROI on the project. This can be broken down into quantitative and qualitative costs to determine project success.

"In my past experience overseeing an energy-saving initiative, we adopted an innovative financing model. The vendor provided equipment at no upfront cost, and we committed to paying them a monthly fee based on the realised energy savings. This approach ensured a win-win situation, aligning the vendor's success with the actual performance of the solution."

FM can have one goal to achieve this, Sustainability, reducing energy bill and bring efficiency, for this organization can do following things: 1. Performance contracting with any energy saving company, where they install energy efficient system in your company such as lightening and HVEC system, they bear upfront cost and may get portion of saving every year. 2. Rebate, tax credit and incentive from the goverment is the other option, Company can research any option where they can install goverment suggested energy efficient system and get incentive tax rebate to reduce financing in project. 3. Internal financing is the other option, where budget can be relocated for higher return.

Start by assessing current costs, proposing retrofit pathways, and projecting future savings. Create a fund from the savings to finance future projects. Ensure ongoing monitoring to adjust and maintain the fund adequately. Explore external financing options for additional support.

A lot of energy wastage is built into the facilities at the design stage. It is important to design the space for energy efficiency in the first place. After project completion ensure a handover of the project. A detailed handover includes all documentation, warranties and staff training, and one or all of these are often left out. All equipment must run according to design spec, and snags must be addressed, as they can point to incorrect installation or setup There are often changes made during construction that have to take other services into account. A variation in the internal design of a space can have many side effects for air conditioning, plumbing and other MEP that will be costly to rectify later.

The education and awareness of users must be considered and enhanced In this way, you can introduce a physical ‘switch off’ campaign that is aimed at building staff and users, encouraging them to SWITCH off lights and plugs when what is being powered is no longer being used. The physicality of the ‘switching off’ supports habit-forming behaviour that you’ll find is taken home and applied elsewhere too If it is not being used, switch it off . .