Through their natural gas and electricity consumption, buildings are the largest source of carbon emissions in the region. At the same time, energy costs are the single largest, controllable expense for most buildings. That’s why energy efficiency retrofits benefit building owners, residents and the climate.
We can facilitate financing in this crucial area.
An integrated set of proven retrofit measures can cut energy and water usage by 15-30 per cent, making buildings more comfortable, reducing maintenance issues and improving resale value. Deeper retrofits that create energy savings of 40 per cent and more are possible through additional measures such as exterior insulation and cladding, window replacements, and fuel-switching using heat pumps.
Retrofits are generally cash flow-positive, meaning that the savings generated pay for the investment over time. This makes it possible to tap into a variety of financing options, including those available from TAF and our partners.
Financing options range from bank loans and equipment leases from commercial lenders, to more specialized options like the City of Toronto’s Home Energy Loan Program (HELP) for homeowners and Hi-RIS program for multi-unit residential buildings.
For multi-residential, institutional and commercial buildings, TAF developed its proprietary Energy Savings Performance Agreement (ESPA™). This novel approach helps finance energy efficiency retrofits without drawing on building owners’ capital or reserves. That’s because an ESPA™ is a service performance agreement, not a loan. TAF or our partner Efficiency Capital pays for the purchase and installation of a suite of energy and water efficiency equipment. The building owner shares the energy savings until the investment (plus a modest return) is repaid, usually over an eight- to 10-year-period. Efficiency Capital, which is the exclusive ESPA™ licensee, was incubated by TAF to advance and scale up financing for retrofits in large residential, commercial, and institutional buildings.
TAF focuses on demonstrating the technical and financial viability of deep energy efficiency retrofits through TowerWise. If you’re interested in undertaking a retrofit that goes beyond business as usual, we can assist with the planning, financing and implementation. Please contact Impact Investing Manager Nicole Leite at firstname.lastname@example.org to discuss your building’s potential to become a leader in energy efficiency.