Funding options

Awareness of available funding options and of any relevant timing factors, such as the budget cycle, can make the difference between a project being implemented or not. Where possible, EEM efforts should be aligned with the budget cycle to maximize the chance they will be funded.

Aside from any funds specifically for energy projects, there may be funds available to promote productivity and efficiency, or funds under executive management control for special projects. Matched government funding for energy efficiency projects may be available and/or subsidized loan structures. It is also worth checking whether the project can be funded by operational budgets, or if there are unspent end-of-fiscal-year surplus funds that could be used.

Some common funding sources include:

Funding option Description
Operational expenditure (Opex) Funding used to maintain regular business operations. Opex funds have a short-term focus so are more suited to lower cost/shorter payback projects
Capital expenditure (Capex) One-off expenditure on items that will generate income in the future. Capex funds often have a mid to long-term focus and may require a more competitive business case process to secure funds
Business improvement funds Energy efficiency projects may be eligible for funding through business improvement programs
Corporate funding For larger companies, funds may be available through a corporate HQ, parent company or central authority
Government funds Local or central government might be a source of funding, as well as tax rebates and a range of other incentives
Alternative funding options Energy performance contracts for buildings are becoming increasingly common. A third party energy services company guarantees delivery of energy savings and is paid from these savings for the term of the contract.
Research funds may be available, especially if trying out new and innovative EEMs.
Low interest rate loans and other novel funding options may be available