December 5, 2019: Did you know that lack of capital is the single biggest variable prohibiting commercial energy efficiency projects? In fact, as many as two-thirds of energy projects get denied each year by conventional lenders.
Using engineering, technology, and finance, Taka Solutions is committed to reducing the world’s energy consumption by 20%. From the beginning, Taka founders Charles Blaschke and Chris Burkhardt both believed financing should never block the path to energy savings. Together they adopted a financial model that makes it possible for building owners to maximise their building’s potential through innovative, efficient and smart energy solutions.
Capital Improvements Through Financing
Energy Performance Contracting (EPC) is a form of financing for capital improvements that provides funding for energy upgrades by leveraging the associated cost reductions. Under an EPC contract, an external Energy Service Company (ESCO), such as Taka Solutions, finances and completes a project to achieve enhanced energy performance. The ESCO utilizes the flow of income derived from the cost savings of the said project to reimburse the costs of the project (to include the initial cost of investments).
The EPC approach is based on the transfer of technical risks from the client to the ESCO based on performance guarantees given by the ESCO. This agreement allows building owners to optimise their existing building’s energy capabilities, boosting profitability while dramatically decreasing their organisational carbon footprint. Essentially the ESCO will not receive its payment unless the project delivers energy savings as expected. Any and all initial payments are paid directly from the energy savings associated with their retrofit. Furthermore, once your energy retrofit project is paid off from your energy savings, you’ll continue to profit from all associated savings.
Partnership with Taka’s Shared Savings Model
At Taka, we strive to remove the strain of finance to make energy performance accessible to everyone. In addition to financing our own projects, we also finance projects for other ESCO companies, equipment suppliers, service providers, and building owners. Thanks to our award-winning finance model, clients can mitigate their initial financial risks while experiencing the benefits of an energy-efficient building. Using our Shared Savings Model, Taka provides all the initial capital expenses, engineering, and equipment for your commercial energy retrofit project.
Upgrading existing infrastructure using a shared-savings financing model decreases any possible loss affiliated with water and energy waste – at no initial cost to your organisation. Once your company partners with an energy engineer from Taka, we will conduct an initial energy audit to determine which areas of your building will benefit from energy upgrades and optimisation. For example, is your company losing energy due to an old HVAC system? Would your building benefit from an upgraded lighting plan? After your initial energy audit, you’ll know exactly where your building is losing energy and what upgrades would help reduce your energy consumption.
Thanks to the shared finance model, your company is guaranteed to experience immediate savings from upgraded technologies and equipment. Shared savings financing benefits include:
- Zero upfront costs
- Decreased building operating costs
- Decreased risk and protection against increasing energy costs
- Increased cash flow and asset value
- Brand awareness as an eco-friendly company (i.e., a lower carbon footprint)
At Taka, we form professional partnerships with service providers to empower companies to complete their energy projects. These partnerships allow us to make energy efficiency economically attainable for everyone. From initial energy audits to sourcing and installation of products to offering energy consultancy, our partnerships allow us to create full turn-key solutions.
We want your company to save money and save energy while simultaneously reducing your carbon emissions. As your energy partners, we’re so confident in the instant savings associated with a commercial energy upgrade that we’ll leverage our Shared Savings Model to fund your project from the start, at no initial cost to your company. Contact our energy engineers to learn more about how we can finance your commercial upgrade.