alternative energy, conservation, and energy efficiency

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Energy Efficiency

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2

• Alternative Energy

• Conservation

• Efficiency

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Solar

Wind

Geo-thermal

Bio-fuels

Hydrogen

Nuclear

3

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Computerized Controllers

Resource Sharing

Better Management Systems

Doing Without

4

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Enabling the systems you have in place to operate with less energy

5

Without altering appearance, performance or productivity

Creating compelling return on investments

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“Energy efficiency is the fifth fuel after coal, gas, renewables and nuclear. It should be our first

choice in meeting our growing demand for electricity as well as solving the climate

challenge”

Jim Rogers, CEO Duke Energy

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“Efficiency is the steak, renewables are the sizzle”

Carl Pope, (former) Executive Director, Sierra Club

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The Energy Efficiency Market

GHG emissions reduction could be as high as 40% by 2030

The United States could save 1.2 Trillion Dollars through

2020 by implementing energy efficiency measures. McKinsey Report, 2009

“By 2030 energy efficiency and behavior change will offset

more CO2 than all new wind, solar and alternative energy

generation combined”, World Energy outlook, 2010

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“Why we need to see the light about

Energy Efficiency”

Cover Page Article, Time Magazine, January, 2009

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The old-school case for energy savings

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Show me the Money!

The new-school case for energy savings

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Chattanooga Warehouse Project Summary

Storage Warehouse

Total Project Cost $102,420.00

Avg Monthly Electric Costs $13,368.00

Total Monthly Savings $3,012.00

Simple Payback Period 34 Months

ROI 35.29%

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Incentives, grants, loans and government

programs have tilted the economics of

Energy Efficiency Projects considerably

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Database of State Incentives for Renewables & Efficiency

US Department of Treasury

Energy Star

US Department of Energy

Summary Links

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Technology

Compelling ROI

Guaranteed Savings

Material Rebates

Preferred Financing

Tax incentives

M & V

Public Relations

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Primary Barriers to EE Implementation

High upfront capital costs

Long payback periods

Uncertainty of savings (perceptions of risk)

Budgets do not prioritize energy efficiency

Split incentives

Limited available capital

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• Cash

• Financing

• Leasing

• Shared Savings (performance contract)

• Energy Service Agreement

Primary options for funding an EE Project

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Cash

(Internal Financing)

Owner can take advantage of all rebates & tax incentives

Owner can take an accelerated depreciation on qualifying equipment

Owner gets 100% of the savings, right up front

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Financing/Leasing

Many excellent loans in market right now for EE projects

Rate costs are usually less than energy savings

Financing costs can be tax deductible (depending on lease structure)

Chattanooga Warehouse Lighting Proposal

Summary Warehouse Storage

Total Project Cost $102,420.00

Avg Monthly Electric Costs $13,368.00

Total Monthly Savings $3,012.00

Lease Cost (60 months) $2,203.00

Monthly Profit (pre tax) $809.00

AECS, LLC Atlanta Client

Total Project Cost $74,499.00

Projected monthly savings $2,593.00

75/25 share (60 Months) $648.00

Total client “profit” $38,900.00

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Energy Service Agreement

Landlord or 3rd party agrees to pay historical energy use for

client for a contracted period of time

Undertakes energy efficiency upgrades at their cost

Imposes management fee (not to exceed historical energy costs)

Profits from the energy savings margin

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Other Financing Options

On Bill Financing – Utility involvement

PACE – Tax value lending

Green Revolving Funds – Requires seeding

Municipal Lease Agreements – Subject to annual

appropriations

Municipal Bonds – Require scale & long initiation

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Four key considerations to create a successful & efficient energy

savings project

Financing must be easily accessible

The investment must be based on a reliable

methodology for predicting savings

The measurement and verification must be agreed upon

and transparent

The risk of underperformance must be low

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www.consensusenergy.com

Steve O’Neil, Managing Partner

steve@consensusenergy.com

(678) 666-4684