Going green helps keep finances in the black

Austerity is good for business at energy management and clean technology business  ENER-G

At a time when businesses are hanging onto the pennies and reluctant to borrow, ENER-G is providing cash strapped organisations with free energy saving technologies – paid for via tomorrow’s energy savings.

 This is a win-win business model says Derek Duffill, Group Managing Director of ENER-G group. He explains: “We fund energy saving technologies, such as combined heat and power, energy saving controls, lighting and biogas generation equipment, off our own balance sheet. In return, our customers refund the investment through the money they save over an agreed contract period.”

This innovative funding model has enabled ENER-G to  grow into a £120 million multi-national business, which designs and manufactures combined heat and power (CHP) systems, building energy management systems  and biogas generators – for anaerobic digestion and landfill gas generation.

Duffill continued: “We recently launched our E-MAGINE building energy management system, which reduces energy consumption in buildings by up to 30% and are quickly building sales by free-issuing the equipment . We’re really ‘putting our money where our mouth is’ as we  meet all the equipment, installation and commissioning costs and then guarantee the savings. On this basis, if we fail to deliver on the proposed savings we make up the shortfall.  Needless to say, it’s a risk free business transaction that customers like.  It’s of particular benefit to fellow manufacturers who can gain better control of energy consumption across warehouses, production facilities and offices.”

ENER-G pioneered its pay-as-you-save Discount Energy Purchase scheme on its cost and carbon saving CHP systems in the 1990s and since the recent economic downturn more than 50% of its CHP equipment is purchased using this cash saving financial model.

With no capital outlay for equipment or installation, customers can benefit from an immediate reduction in their energy costs and carbon footprint. The CHP system is then paid for via a metered energy charge that is guaranteed to be lower than previous electricity purchase costs. The plentiful supply of heating is supplied free.

Sales Director Ian Hopkins said: “The Discount Energy Purchase concept is very simple and places virtually no risk on our clients. We select and install a CHP system that converts primary fuel into electricity and heat/cooling. Because the system is more efficient, we are able to charge less for electrical output than energy supply companies, provide free heating and cooling and still recoup adequate funds to cover the investment cost and ongoing maintenance of the system. Our clients can use their capital to fund core projects and sit back and enjoy bottom line savings.”

Hopkins added: “we have clients that have enjoyed the benefits of Discount Energy Purchase for 15 years and are now replacing their equipment under the same simple contract structure. DEP is a very effective way for companies to regain some control over their energy costs while electricity rates continue to rise. It also gives them independence from the National Grid, so that if there is
power failure they can keep the lights on and maintain business continuity.”

 ENER-G operates in 17 countries and recently announced that it had taken a  75% holding in US based CHP business Rudox  to accelerate expansion in the growing American combined heat and power market.

Further information: www.energ.co.uk

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