Barrett Capital’s shared savings plans offer a pay for performance solution to reduce energy costs. We understand that energy upgrades and retrofits can translate into millions of dollars in capital expenditures, which amounts companies may be reluctant to spend or, for which they are unable to gain “capex” approval from top management or existing lenders. So, Barrett Capital has created a performance based service contract that uses the savings derived from the implemented energy savings measures (“ESM’s) to cover the cost of the energy efficiency undertaking. All project costs, including ESM’s, design, materials and equipment, implementation, maintenance, verification and monitoring are covered.
Barrett Capital’s Shared Savings Plans provide that excess savings above a specified level are shared with the customer from the beginning. In this manner you immediately start to benefit from the energy savings arrangement. In most instances, should the Base Level of savings not be reached during any year of the performance contract, the ESCO will pay the difference between the guaranteed savings and the actual savings.
After Barrett Capital has recovered its contracted amount, all of the ongoing savings can accrue to you through an option to buy the ESM’s at a set price or at a favorable fair market value. One of the side benefits of shared savings plans is that, unlike straight financing, these long term contracts are not required to be included as liabilities and, therefore, are considered “off balance sheet” financing.
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