Our team of financial, engineering and project management professionals have developed a structured approach that mitigates design and implementation risk and ensures improved performance and reduced energy consumption while generating sustainable financial savings.
EC’s investment solution provides building owners the opportunity to significantly improve building performance without affecting the balance sheet
As an independent provider, EC allows the use of a number of pre-selected engineers as well as flexibility on choice of equipment from reputable suppliers. Building owners receive the best technology at the most competitive prices
EC reduces the financial risk of energy efficiency projects through its insured energy savings warranty program. For the duration of the project, EC or one of its partners will measure and verify the performance of the energy upgrade using the most recognized independent protocol (IPMVP). Quarterly reports will be provided to the building owner demonstrating the energy and cost savings. EC has carefully selected a comprehensive, well-rounded team of channel partners to provide property owners and asset managers a complete energy upgrade package. This gives us the flexibility to choose the best possible partners for your energy upgrade.
EC and its partners work with you to identify and develop a customized approach that meets your financial and technical needs. Through a structured screening process, EC helps you select an engineer and identify the project's technical and financial viability. Once an audit is conducted, the data is used to create a finance-able project.
EC creates a financial model based on the information received from the audit. EC works with the building owner to create the most viable shared savings agreement. EC draws up a Letter of Intent describing the financial terms and conditions of implementing the energy efficiency upgrade best suited to the building’s needs. The Energy Savings Performance Agreement (ESPA) is a unique non-debt investment solution that covers building upgrade costs while decreasing your operating expenses.
Repayment is equal to, or less than, the energy savings. The project must be repaid in full within 10 years based on the energy savings. Once the terms and conditions of the ESPA™ are completed – over a period of seven to 10 years on average – the building owner retains 100% of the energy savings.
Following acceptance of the contract, the engineer procures and manages the entire installation process. Installation times vary depending on the size of the project, with most multi-measure projects taking three to five months.
For the duration of the contract, EC and its partners measure and verify the performance of the energy upgrade project using the most recognized independent protocol (IPMVP). Quarterly reports are provided to the building owner demonstrating the energy and cost savings.
Harbourfront Energy Efficiency Retrofit: Using an Energy Savings Performance Agreement, we financed the installation of energy-efficiency measures at three buildings at Harbourfront Centre.
Multi-measure Energy Retrofit: We financed a new, energy-efficient heating and cooling system in this 13-storey building. Hallway lighting has been upgraded and appliances and fixtures – stoves, fridges and toilets – have been upgraded to energy-efficient models in the co-op’s 123 apartments.
For more information please check out this case study prepared by TAF.
Harmonizer Retrofit: We financed the installation of an electricity-saving measure called the Harmonizer at six YMCA locations. This equipment helps electrical equipment at the YMCA facilities operate at a controlled voltage level, reducing energy costs and extending equipment life.
Efficiency Capital (EC) is a Toronto-based, privately-held Canadian corporation. The Atmospheric Fund is a strategic capital partner.
EC works with owners of commercial, industrial and multi-residential buildings, coordinating with landlords and institutions to enhance their asset values by installing performance guaranteed energy efficiency upgrades. EC allows property owners and asset managers to increase overall building profit by realizing savings on operating costs and achieving significant declines in greenhouse gas emissions associated with energy consumption.
EC is a single-source provider of comprehensive, well-managed solutions that ensure the highest standards in building energy efficiency. The EC team supervises the engineering, investment, installation, and monitoring of energy upgrade projects. EC earns back its capital and professional services investment by sharing the clients’ utility cost savings.
EC is well positioned to serve a dynamic real estate market where reducing operating costs by lowering utility expenses is a competitive advantage, augments a building portfolio’s financial returns and boosts metrics associated with sustainability.
The Atmospheric Fund (TAF) is a regional climate agency that invests in low-carbon solutions in the Greater Toronto & Hamilton Area and helps scale them up for broad implementation. TAF is an experienced leader and collaborates with stakeholders in the private, public and non-profit sectors who have ideas and opportunities for reducing carbon emissions. Supported by endowment funds, TAF advances the most promising concepts, particularly those that offer benefits beyond carbon reduction such as improving people’s health, creating new green jobs, boosting urban resiliency and contributing to a more fair society. TAF developed the ESPA™ and incubated Efficiency Capital to advance the ESPA™ model across various client segments. For more information about TAF, visit TAF’s website at TAF.ca
Because EC pays up to 100% of the energy efficiency upgrade, the building’s capital is preserved and can be used for other purposes.
No debt on your balance sheetBased on advice to EC from a “big four” accounting firm, the ESPA investment approach is not considered debt. The agreement therefore does not create a balance sheet liability and a borrowing by-law is not required. While this advice comes from a knowledgeable and professional source, you should still review the agreement with your own advisors.
Your energy savings are insuredAn A-rated insurance company insures the energy savings. This means that if your savings are lower than expected, you don’t pay the difference – the insurer does.
We take on the riskWithin the term of the contract and the expected life of the equipment, EC assumes the risk of ownership and performance.
We are product agnosticWe install the best products at the best prices, regardless of who the manufacturer is.
There is alignment of interestsThe building owner wants properly functioning equipment and their portion of energy savings. EC wants to earn a return on its investment in the retrofit. An ROI is only possible if the retrofit is successful. The insurer wants to avoid paying a claim. In this way, all three stakeholders have an incentive to make sure that the retrofit is successful.
Your emissions are reducedReducing energy consumption saves money and the environment. As your utility bill shrinks, so does your carbon footprint.
Tax benefitsThe cost saving payment is part of a service agreement which is a tax deductible expense in the year that it is paid to EC. Depending on your entity’s legal structure (corporation, partnership or not-for-profit organization) the tax benefits that accrue may differ. Please consult your tax professional.
What’s the catch? Is this too good to be true?We intentionally created a product and service that eliminates the many barriers to energy conservation in the building sector. We saw a prime business opportunity in a niche market that few other companies are currently exploring. Prior to investing in EC, Toronto Atmospheric Fund used its $23 million endowment as leverage to test this approach to encourage energy efficiency, diminish greenhouse gases, and earn a healthy return on investment. The success on all three fronts demonstrated that energy conservation turns out to be an opportune business venture. EC is expanding market share based on TAF’s thoroughly researched pilot projects in this field.
Efficiency Capital (EC) Inc.
130 Queens Quay East,
Suite 902 (West Tower),
Toronto, ON M5A 0P6
Email: info (at) efficiencycap.com
Telephone: 416.306.8181 / 647.800.2493