by Shane Henson — April 6, 2012—Energy savings performance contracts (ESPCs) are quickly becoming a way for businesses, organizations and public entities to reduce their energy costs and operate more sustainably without initially investing what can often be a significant amount of capital.
Ameresco Inc., an energy efficiency and renewable energy company, recently announced that its $3.6 million ESPC with Lyon County School District (LCSD) in western Nevada is expected to save the state’s fourth largest school district more than $345,000 annually for 15 years. Under the ESPC, Ameresco guarantees energy cost savings for the duration of the contract. LCSD will repay the up-front costs with a portion of their projected annual savings over the contract’s 15 years, says Ameresco.
LCSD includes one of the oldest continuously operating schools in the state, and serves approximately 8,400 students. The comprehensive energy efficiency project comprises infrastructure upgrades to 19 schools and four administrative buildings representing more than 1.2 million square feet of facilities. Energy efficiency measures scheduled for completion by October 2012 include lighting systems, vending machine controls, computer power management, trash compactors, demand controlled ventilation and programmable thermostats.
Not only will the energy conservation measures reduce energy demand and consumption, but they are expected to cut LCSD’s operations and maintenance costs by nearly $25,000 by retrofitting light installations district wide, says Ameresco. Another benefit to LCSD is long-term, non-obsolescent assets that continue to deliver cash flow, and reliability benefits beyond term for debt service. Making these energy efficiency upgrades also allows the district to capture $77,000 in rebates from the local natural gas and electric utility companies.
In addition, the greenhouse gas reduction benefits of the LCSD upgrades include the avoidance of 1,928 standard tons of carbon dioxide per year. This reduction in carbon dioxide emissions is equivalent to removing 364 cars from the road or powering 208 homes each year, adding health benefits for the school district and the communities it serves.
