Is lack of finance slowing your energy saving plans? Are you struggling to release capital and convince the board that yours is the most important investment proposal? What is the financial and environmental cost of delaying implementation of your distributed energy project?
Barriers to progress
Many organisations can face challenges when looking at onsite generation projects and adopting advanced energy saving technologies and services because of capital constraints and competing funding priorities.
A major barrier to progress is shortage of time and lack of specialist knowledge of the distributed energy market. This makes it difficult to build a complex and detailed investment case to secure senior approval.
Missing out on opportunities
Such delays mean that businesses are missing out on big opportunities to reduce energy and operational costs. They're also failing to benefit from sustainability improvements and the chance to increase business resilience by becoming independent energy producers.
Rising, unpredictable energy costs and the urgent need to tackle climate change and improve energy security require radical new approaches to generating and managing energy.
Distributed energy solutions like combined heat and power (CHP) and solar generation, together with innovative methods of monitoring, saving and storing energy, are proven to deliver huge returns. These proven opportunities are, however, hugely unexploited – with finance being one of the biggest stumbling blocks.
Centrica Business Solutions' flexible and transparent financing options offer a win-win for customers. We provide the upfront investment to accelerate delivery of distributed energy projects and unlock immediate benefits. In this way we're helping thousands of organisations to tackle the triple challenge of higher energy prices, climate change risk, and the increasing threat of energy-supply disruption.
Our flexible financing solutions generate cash positive outcomes for organisations, without the need to access and utilise internal funding you may want to spend on other core priorities. This is achieved through financing that enables your business to purchase energy at a lower rate, from energy assets on your site, than you buy from the grid.
And with expertise and strong balance sheet means we have a proven track record of long-term funding partnership. This enables our customers to fulfil their energy vision and prepare for the future with our trustworthy team supporting them all the way.
Centrica Business Solutions provides four key types of flexible commercial and financing options to suit customers' individual needs:
1. Discount Energy Purchase (DEP) - for organisations seeking to move to on-site generation and gain greater independence from grid supplied energy. Our long-established DEP financing option works on a leasing principle. This means that installation and lifetime operation and maintenance are covered by Centrica with zero capital costs.
Our customers repay the investment by paying a discounted rate for the generated power, which is always set at a lower rate than grid supplied electricity after accounting for increased gas consumption costs. All captured heat is supplied free of charge. To ensure fairness, service fees for ongoing operation and maintenance are linked to power performance levels.
2. Energy Services Agreement (ESA) - cover complex, integrated energy solutions, which might include large CHP, battery storage, boilers, LED lighting, BMS, energy efficiency and optimisation services. Customers can gain immediate benefits from a holistic energy saving package, delivered with guaranteed returns. The capital investment and lifetime operation and maintenance costs are repaid via a fixed, indexed tariff for the lifetime of the asset.
3. Solar Power Purchase Agreement (SPPA) - for organisations seeking to improve sustainability and reduce energy costs by generating renewable power from solar. Our SPPA covers all lifetime project costs for the lifetime of the asset, repaid via a fixed p/kW power purchase rate; which will typically be a lower price than your current energy supply.
4. Flexible Term Agreement (FTA) - this new commercial option enables food and drink manufacturing businesses to unlock energy cost savings from CHP, with the flexibility to relocate or return the CHP unit after 3-5 years, penalty free. This flexible contract keeps pace with changing business demands. The capital and ongoing operational costs are repaid via a performance-based service fee and discounted charge for the generated power. The generated heat is supplied free.
To find our how Centrica Business Solutions can financing your energy ambitions, get in touch by phone or email on our Contact Us page.
Bill Rees is the Director of Centrica Energy Assets, which is playing a leading part in shaping the UK’s net zero future, by delivering around 1GW of flexible energy assets.
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