Finance VIRTUE through ESCO, Endure No Capital Outlay
VIRTUE energy storage projects can be financed through an ESCO funding model to enable clients to benefit from improved efficiency, financial savings and enhanced performance as a result of installing a VIRTUE system, without any of the capital outlay.
ESCO funding frameworks are a proven strategy for companies who are looking to invest in energy saving technologies whilst minimising the risks and financial outlay perceived with such high level projects.
Through the ESCO funding model all up-front investment required for a VIRTUE project is fully provided to enable the project to be implemented, with the investment recouped from the client through the savings generated via an agreed payback period.
The ESCO funding model for VIRTUE has 5 simple stages:
Stage 1 – Analysis:
Analysis of the current business operations, energy usage and examination of site and facility
Stage 2 – Viability:
Feasibility calculations are carried out on the project including costs, savings and payback periods
Stage 3 – Finance Package:
A clear and concise finance package is created with all details agreed upon
Stage 4 – Implementation:
The project is undertaken with the project carried out as agreed, at no initial cost to the client
Stage 5 – Verification:
An ongoing savings verification reporting service is provided to monitor performance
ESCO Funding Model Purchasing Example
The below example outlines a typical ESCO funding model, highlighting how VIRTUE projects can be funded through this framework with no initial outlay cost to the customer.
The below example is based on a 5MW output with 8.2MW storage, figures are recalculated annually (1st April) as they are dependent on annual consumption, recorded Triad demand and the DUoS rates.
All purchases through ESCO are subject to eligibility.
- Cost to client for installing VIRTUE through ESCO funding: R0
- Annual fixed revenues received by the customer: R7,546,672
- Annual rent for 10 years (80% of fixed revenue): R6,037,328
- Annual savings retained by customer (20% of fixed revenue): R1,509,328
- Total savings achieved by client at end of 10 years rental: R15,093,329