Healthcare organizations with limited budgets for energy projects can consider using external financing options, such as Energy Savings Performance Contracting (ESPC), to cover the initial cost of project implementation.
Healthcare organizations approach financing for energy projects differently due to their unique characteristics: Building ownership: In the healthcare sector, facilities rarely change ownership, enabling owners to consider taking a long-term investment approach.
For healthcare facilities, particularly larger ones like hospitals, financing solutions that can fund multiple projects across a campus or complex are often a good fit. Examples include performance contracts and green revolving funds.
Healthcare facilities can use debt or loan financing to purchase energy equipment or pay for the costs of an ESPC. Other financing options like Commercial PACE, Efficiency-as-a-service, on-bill financing/repayment, and power purchase agreements are also applicable to the healthcare sector but have had limited uptake so far.
The primer is part of the Better Buildings Financing Navigator, an online tool that helps public and private sector organizations find financing solutions for energy efficiency and renewable energy projects.
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