SCIenergy Describes MESA Energy Efficiency Financing

by | May 12, 2014

bulbsSCIenergy’s CEO has described his company’s “managed energy service agreement” approach aimed at financing energy efficiency initiatives in commercial building in Forbes.

A MESA operates something like a small-scale energy services performance contract or contracts often used to finance solar panel in which the property owner pays for the installation out of the savings the improvements create.. Under atypical deal, SCIenergy offers an interested property owner a 10-year deal that outlines the price for the term of the contract, according to CEO Steve Gossett. The amount of energy consumed is fixed, but prices are not, according to Forbes. Often prices can be fixed for five years, and then fixed pricing can be extended in one  year chucks, or the customer can take some risk and buy energy from the markets, Forbes reports.

Clearly predicting consumption amounts is key to making the maths work. Over ten years occupancy, and, as such, energy consumption, is very likely to fluctuate. SCIenergy can alter volumes based on changes in the weather and occupancy to adapt to usage changes. The company can also sub-meter individual, high-energy products, Forbes reports.

SCIenergy recently secured $12 million in financing. Gossett sees the market getting “very hot” and calls the model “the way of the future.”

In February, the City of Sacramento and Ygrene Energy Fund, a provider of clean energy finance programs for local governments, launched Clean Energy Sacramento, a public-private partnership, which provides funding to local property owners for energy efficiency, renewable energy and water conservation upgrades at no up-front cost. The initiative provides 100 percent private funding for energy retrofits with no public money. The program is aiming to help achieve Sacramento’s goal of reducing energy use 15 percent by 2020.

Picture credit: Light bulbs, idea concept via ShutterStock.

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