In general, there are three different paths to take on the road to start conserving energy and saving money. Below are three cash flow diagrams, each representing a different financing option. All of the options are based on a pre-retrofit annual energy cost of $1 Million and a post-retrofit cost of $950,000 with a solution investment of $100,000. We have also included licencing and basic support of $10,000 per year in the examples below. Our iUtility and Certified Partner Products and typically save our clients between 5% and 10%, and greater savings have been achieved. Conservation and cost savings are GUARANTEED by Avanceon or your money is paid back.
Option 1: Shared Savings
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The lowest risk option is our Shared Savings Program. We are so confident in our iUtility Products and Conservation Services that we are willing to front the cost of the solution and the installation and only get paid a portion of the savings that are created by the increase in efficiency. This chart shows that after sharing in the savings, from our example above you still have a $15,000 positive annual cash flow!
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Option 2: Lease to Own
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Perhaps the most financially attractive route is the Lease-to-Own option. Under this program, you pay for the chosen solution over the course of 3 years. The energy efficiency gains create a positive cash flow of $2,000 per year, and the full benefit of the improvements can be enjoyed starting in year 4. Lease terms can be extended to improve cash flow during the lease period.
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Option 3: Standard Purchase
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If cash or capital are available, our final option is a standard purchase which means you can start collecting all of the savings in year 2. This cash flow scenario assumes the chosen solution costs $100,000 and the project has a 2 year return.
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