Executive Summary: What is the shared savings model in energy consulting? It is a service contract scheme where the engineering firm implements efficiency improvements at zero cost to the client. Fees are charged monthly based on a percentage of the actual proven financial savings on the grid operator's energy bill.
Understanding the proposal:
Basically, we are offering to implement our energy management system in your company. Instead of a high upfront cost, our compensation is based on the actual savings we will generate on your electric bill during the first six months of the contract.
How does it work?
Once our system is implemented, we will closely monitor its energy consumption. At the end of each monthly billing cycle, we will compare your current usage to a pre-established baseline usage (which we will define together before implementation, taking into account your history and operation).
Any reduction in your energy bill below that consumption base is considered “realized savings.” We will share this savings as follows:
- 70% for your company:You keep most of the profit.
- 30% for us:This is our fee for the implementation, support and ongoing optimization of the system during the contract.
Key Benefits for your Company:
- Without Significant Initial Investment:You do not need to shell out a large sum of money at the beginning. Our compensation is directly tied to results.
- Guaranteed Cost Reduction (Potentially):We only win if you save. This completely aligns us with its objective of reducing energy costs.
- Quick and Efficient Implementation:Our goal is to get the system up and running as soon as possible so you can start seeing savings.
- Experience and Specialized Knowledge:You will have our team of energy management experts to optimize your consumption.
- Low Risk Trial Period:A 6-month contract allows you to evaluate the benefits of our system before committing to a longer term.
Next steps:
In order to offer you a more detailed and personalized proposal, I would like to know a little more about your company:
- What is your type of industry or sector?
- Could you provide me with an average of your current monthly energy bill?
- Do you have any ideas about specific areas where you think more energy might be being consumed than necessary?
With this information, we will be able to evaluate the savings potential and present you with a more accurate projection of the benefits you could obtain with our system.
We are available to answer any questions you may have and discuss how we can help your business optimize its energy consumption and reduce its costs. I hope to have the opportunity to collaborate with you!