130 Energy Project Financing: Resources and Strategies for Success
Benefits*
After you have their attention, be sure that you include compelling
benefits that “take away the pain” the audience is feeling. As engineers,
we are good at mentioning the typical benefits:
- Saves energy, money, waste and emissions;
- Offsets the cost of a planned capital project;
- Improves cost-competitiveness, productivity, etc.;
- Is a relatively low-risk, high-profit investment that directly impacts
the bottom line**.
In today’s green-minded economy, we could also demonstrate that
“green” projects are a very effective marketing tool—which could get the
client’s marketing department behind your project—because these ben-
efits have also been proven†:
- Improves the client’s “green” image;
- Differentiates the client from the competition††;
- Introduces them to new markets, suppliers and clients‡¶;
- Helps them grow sales/revenue.
However, we should also mention the passionate, global and moral
reasons behind a good “green” project:
- Slows global warming, reduces acid rain;
- Reduces mercury pollution, which allows us to eat healthy;
- Improves our national energy independence;
- Reduces security/disaster risks, etc.
*Download the FREE emissions calculator from http://www.ProfitableGreenSolutions.com
**For Example: an energy-efficient project that saves $100,000 in operating costs is equivalent
to generating $1,000,000 in new sales (assuming the company has a 10% profit margin). It can
be more difficult to add $1,000,000 in sales, and would require more infrastructure, etc.
†Several examples include: Patagonia, Google, GE, Home Depot, etc. Other examples can be
downloaded from the “Resource Vault” at http://www.ProfitableGreenSolutions.com
††For Example: A construction firm switched to hybrid vehicles, which offsets the carbon
emissions. The firm’s name is prominently displayed on each vehicle. They get tons of new
business because they are seen and known as the “greenest construction firm” in the city.
Plus, they charge a premium for their services!
‡For Example: A law firm renovated their office in a “green” manner and attracted a new
client (who chose the firm due to its “green” emphasis). The new client was worth an extra
$100,000 in revenue in the first month.
¶Additional Examples: “Green” networking groups such as “greendrinks.org” can supple-
ment the traditional business of networking clubs like Rotary Club, Kiwanis, Chamber of
Commerce, etc. Also, when joining groups such as the Climate Action Registry, companies
are exposed to other members, who could be superior suppliers, clients and partners.