Green Lease Case Study
One recent example of a lease that helped implement energy saving LED lighting systems came from one of our strata corporation customers.
The strata building had undergone an energy audit and it was determined that the building could realize substantial energy savings by installing LED lighting. The only problem was that the cost was about $50,000 to do the installation and the owners were reluctant to deplete their emergency reserve fund or to have a special assessment of the strata owners to cover the cost. BC Hydro offered them a tempting $20,000 efficiency rebate to help offset the cost, but the owners were still reluctant to move ahead.
We were able to provide them with a unique lease structure that solved the problem without any impact to their cash position. We set up a lease whereby there would be no payments on the lease for the first 90 days, except for a lump sum payment after 60 days that was equal to the BC Hydro rebate. The LED supplier was paid in full after the installation was complete and the strata owners did not have to start making their lease payments until after they started seeing the energy savings on their electricity bill. Problem solved! The even better news is that the payback was pretty quick in this case and once the lease is complete, the monthly savings will get even bigger.
If you are considering implementing an energy savings program, let us work with you to provide a financing solution that will make sense to your business and your bottom line.