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cool
cities delaware energy sustainability, environmental stewardship and climate protection for all local governments |
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 Cool Cities  U.S. Conference of Mayors Climate Protection Center  Delaware Chapter  Join us on |
FUNDING
RESOURCES AND FINANCING OPPORTUNITIES
Local governments can afford to make
energy efficiency improvements now! Indeed, we cannot afford to
wait. There are a variety of financing opportunities that enable immediate action to reduce energy consumption and lower greenhouse gas emissions. The following financing options are well established and utilized by local governments for this purpose. Energy Performance Contracting One of the most popular financing mechanisms for energy efficiency improvements, energy performance contracting enables local governments to bundle energy savings guarantees with the purchase of efficiency upgrades by contracting with an Energy Service Company (ESCo). Local governments then return this investment out of the amount of money that they save through reduced energy consumption, based upon the guaranteed energy savings of their contract.
This common public sector financing alternative enables repayment of energy efficiency investments from operating expense dollars instead of capital expense dollars. By allowing local governments to pay for energy upgrades through money already set aside in annual utility budgets, tax-exempt lease purchase agreements are not considered debt and enable savings from future utility bills to pay for new, energy-efficient equipment today. Short Payback for Efficiency Improvements Local governments use energy to heat, cool and light buildings, fuel vehicles, support computers and communications systems, light streets, assist police and engage in the many public services provided to residents, businesses, schools and community organizations. When local governments reduce the amount of energy that they need to provide services, they are able to save money and reduce their vulnerability to rising energy costs. Often, investments in energy efficiency can pay for themselves in the amount of energy that they save in a short period of time. Reduced energy costs enable local governments to use their revenue to improve other services or make new investments in infrastructure. The following energy efficiency improvements can return short payback on investment and should be encouraged: • Replace conventional street lights with high-efficiency light emitting diode (LED) • Increased efficiency of water and wastewater pumps • Retrofit lighting • Weatherization • Energy Star Appliances • Fuel Efficient Vehicles Cost of Waiting to make Efficiency Improvements Given the recent increases in energy costs, local governments cannot afford to delay making energy efficiency improvements. The Environmental Protection Agency has created several tools that assist local governments in determining the financial metrics of energy efficiency improvements.
While the upfront costs are often seen as a barrier to local renewable energy projects, local governments can afford to install distributed renewable energy, such as solar photovoltaics (solar panels). The Dover Sun Park, currently being constructed in Dover, Delaware, is an example of how a local government partnership with non-government entities enabled creative financing opportunities. The City of Dover demonstrates how to make distributed renewable energy a reality.
Delaware's Sustainable Energy Utility Delaware Department of Natural Resources and Environmental Control (DNREC) Federal Grants Energy
Efficiency and Conservation Block Grant (EECBG) fact sheet from the
U.S. Conference of Mayors
Economic Recovery Resources for Cool Cities Bringing Recovery Funds Home: An Activist Toolkit for Energy Efficiency and Conservation Block Grants Accessing Stimulus Dollars: A Guide for Local Governments Other Financing Strategies |
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CITIES PROGRAM |
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