Meets: The Metered Energy Efficiency Transaction Structure
There are many obstacles that stakeholders face when looking to address improving energy efficiency for buildings. MEETS is a fundamentally different approach to energy efficiency that is designed to help overcome those obstacles. MEETS is a coalition that includes general contractors, controls and analytics companies, and investors that are offering a unique financing program for building upgrades to reduce building’s energy spend. It aligns the interests of all stakeholders as it harvests energy from the commercial building sector. The program provides the tools and community to bring deep energy retrofits to scale.
LONG-Washington has joined this coalition and can now offer services, controls, and analytics to commercial building owners or managers, whether they are existing clients or new ones.
Commercial building owners, their tenants, and utilities feel little or no direct financial incentive to make substantial energy efficiency improvements
Building owners pass down energy costs to their tenants and see no direct benefit in efficiency improvements
Building owners that do pay energy bills can only harvest energy savings when they own the building, typically 5 years
Utilities are concerned about lost revenues that accompany current energy efficiency programs
Utilities promote energy savings up to levels required by regulators
It is difficult and expensive to measure actual savings from upgrades because usage is dependent on occupancy levels, climate and other variable factors
Building energy efficiency enhancements have a checkered record for meeting design goals
Key Transaction Players: Investors, Building Owners, Utilities:
Delivers capital based on long term (20-30 years) PPA (Power Purchase Agreement) with the utility based on Meter Energy Efficiency harvested from building upgrades (BAS, Analytics, Lighting)
Secures right in the building with a lease – Energy Tenant
Investor pays owner rent to use the site providing additional rental income to the owner
Bills building owner as if no upgrades took place and the bill includes Actual Consumption and Metered Energy Efficiency
Utility experience no loss in gross revenue Energy Tenant Lease terminates
Receives Energy Tenant rent from Investor
Building owner has no capital at risk and owns building upgrades once
Andy is a Senior Account Executive at LONG. He is passionate about helping building owners and facility managers improve energy and labor efficiencies by applying continuous automated analytics solutions.