Three major problems in today’s’ co ownership buildings :
« An energy audit has been made. What now? »
Third party financing is the answer to all of these questions:
The third party financing company not only brings financial resources, it also has the technical expertise to keep the project on track.
Once a project has been identified, Sophia Environment will support all the needed investments: energy audits, project development, support, materials and equipment… Practically, Sophia Enviroment will give out a loan to its client, allowing the client to pay the different suppliers.
As a counterpart, once everything is in place and the works are finished, Sophia Environment will capture part of the savings in order to recoup its investment.
Savings are calculated on a yearly basis using the internationally recognized IPMVP method.
Since only part of the savings are used to recoup the investment, the client benefits from the other part as of the first year. At the end of the contract, 100% of the savings stay in the client’s pocket.
If other types of investments can be made (renovations, new construction), we can also finance of the additional costs of integrating the environmental component (better insulation, higher efficiency boiler etc..) .
The method used to calculate savings can sometimes be cause for disagreement. This method is more than the simple comparison of energy bills before and after the project. It is necessary to take into account a series of exogenous parameters: outdoor temperature, energy prices, cost of additional or avoided maintenance...
To incorporate these factors in our calculations, we use the international IPMVP protocol (International Performance Measurement and Verification Protocol) developed by EVO (Efficiency Valuation Organization). IPMVP presents guidelines for calculation of savings from energy conservation projects. Respect of the guidelines enables verification of calculations by a third party and therefore offers the customer an additional warranty.
"Savings are calculated in a transparent manner, based on international standards"
No, the IPMVP protocol (see above) provides for the integration of such parameters. During a cold winter it is normal for energy bills to increase as it is for the energy consumption. However, this bill would have been even higher if no energy saving project had been undertaken.
To calculate savings, we standardize consumptions using degree days in a typical year. This allows us to compare more rationally.
The answer is not one way. On the one hand, we already take into account a certain increase in energy prices during our project planning. A rise in prices is therefore expected beforehand.
On the other hand, an unexpected fluctuation in one way or another of prices will have a direct impact on savings calculation. Our contracts anticipate this kind of situation:
If the cost of energy has been overestimated, the savings will be less than expected. We will then adjust the reimbursement rate (never exceed the savings) if the situation persists.
If the price was underestimated, the savings will exceed our expectation. If this kind of situation persists, a reduced repayment period can be considered.
In energy performance contracting, the third party is responsible for the performance of the installations. Project profitability for the third party is dependent on the good performance of installations. Therefore we strive to :
Nothing could be easier! Just contact us and we will discuss the opportunity with you. If the project sounds interesting, then we will carry out the audit of your building.
Minimum project requirements