ENERGY EFFICIENCY FINANCE
Energy Efficiency Indicator Survey and PACE
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Copyright 2011 Johnson Controls, Inc.
JOHNSON CONTROLS
140,000 Employees
Multi-industry
Founded 1885
Building Efficiency
Power Solutions
Automotive Experience
Creating quality indoor
environments that are
comfortable, safe, energy
efficient, and sustainable
Providing the highest quality,
lowest cost automotive
batteries to power vehicles of
today and tomorrow
Delivering world-class
technologies that differentiate
vehicle interiors and increase
consumer demand
 >200 million vehicles
 1/3 of world’s automotive batteries
 1 million building efficiency customers
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THE INSTITUTE FOR BUILDING EFFICIENCY
The Institute for Building Efficiency is an initiative of Johnson
Controls
to provide information and analysis of
Technologies
Policies
Practices
for efficient, high performing buildings and smart energy systems
around the world
www.InstituteBE.com
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1 – ENERGY PERFORMANCE CONTRACTING
2 – ENERGY EFFICIENCY INDICATOR SURVEY
3 – PACE
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PERFORMANCE CONTRACTING
Johnson Controls is the largest ESCO in North America,
with $4.7 billion active cost saving guarantees
Since 2000, the we’ve delivered verified energy savings
resulting in 13.3 million tons of avoided GHG emissions
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AN EXAMPLE FROM THE COMMERCIAL
REAL ESTATE SECTOR
Reduce
Loads
Upgrade
Systems
• Widows
• Insulation
• Daylighting
• Green pre-builts
• Occupancy/photo
sensors - lighting
and plug loads
• Chiller plant
retrofit
• VAV air
handlers
Monitoring
& Controls
• Direct digital controls
• Demand-controlled
ventilation
• Tenant energy mgmt
system
RESULTS
38% energy savings
Simple payback under 3 years
LEED Gold certification
Energy Star Top 10% of U.S. office buildings
33% reduction in cooling load
Savings of $4.4 million annually
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1 – ENERGY PERFORMANCE CONTRACTING
2 – ENERGY EFFICIENCY INDICATOR SURVEY
3 – PACE
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ENERGY EFFICIENCY INDICATOR SURVEY
Global survey of energy management decision makers
857
1,692
428
450
103
155
77
3,868
North America
India
Brazil
North America
Europe
India
China
North America
Europe
India
China
Australia
Brazil
South Africa
North America
(English only)
(2 languages)
(7 languages)
(8 languages)
2008
2009
2010
2011
2,567
1,249
North America
(English only)
2007
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1,146
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2,882
WHO ARE THE US RESPONDENTS?
Criteria:
1. Must have budget
responsibility for their
organization’s facilities.
2. Job responsibilities
must include reviewing
or monitoring energy
usage, and/or
proposing or approving
initiatives
to make organization’s
facilities more efficient
Respondents by job title and sector
Other
9%
Industrial
10%
Institutional
38%
Commercial
52%
C-level
Executives
18%
Owner/
Proprietors
18%
VPs
26%
Facility
Managers
29%
U.S. respondents identify responsibility for
3.5 billion square feet
(more than 4% of existing building
stock)
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BARRIERS TO EFFICIENCY - GLOBAL
Technical, organizational, and financial challenges
What is the top barrier to pursuing energy efficiency at your company/organization?
Lack of funding to pay for improvements
30%
Insufficient payback/ROI
19%
Uncertainty regarding
savings/performance
12%
Lack of awareness about opportunities
9%
Lack of technical expertise to evaluate or
execute projects
9%
Landlord/tenant split incentives
8%
No organizational ownership/dedicated
attention to managing energy efficiency
8%
0%
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10%
20%
30%
40%
FINANCIAL BARRIERS IMPORTANT IN U.S. / CANADA
Most respondents looking to internal budgets
What is the top financial barrier to pursuing energy efficiency at your
company/organization?
Insufficient internal capital budget
Insufficient government or utility
incentives
44%
6%
Balance sheet debt limitations
3%
Difficulty obtaining external financing
at attractive rates and terms
3%
Inability to secure external financing
2%
Difficulty identifying appropriate
financing options
2%
0%
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Globally
organizations
are looking to
use internal
capital first
 69% have
used internal
budgets in the
past 2 years
 74% of
those will use
internal
budgets in the
next 2 years
10%
20%
30%
40%
50%
1 – ENERGY PERFORMANCE CONTRACTING
2 – ENERGY EFFICIENCY INDICATOR SURVEY
3 – PACE
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PROPERTY ASSESSED CLEAN ENERGY
(PACE)
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Source: Institute for Building Efficiency
EXISTING & EMERGING COMMERCIAL
PACE PROGRAMS
Northampton, MA
Milwaukee, WI
Ann Arbor, MI
California PACERegional
Bedford, NY
Northeastern OH
Sonoma County, CA
Placer County, CA
San Francisco, CA
Boulder County, CO
Kansas City, MO
Washington, DC
WRCOG, CA
Los Angeles, CA
Palm Desert, CA
Santa Fe, NM
FL-Regional
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Emerging Commercial PACE Program
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Source: LBNL
Existing Commercial PACE Program
17 programs may be
operational in next 6-12
months. 5 programs are
currently operating.
COMMERCIAL PACE PROGRAM BEST
PRACTICE
1. Flexible Financing Model
2. Require performance guarantees and contractor certification
3. Target portfolios of properties initially
4. Create a credit enhancement utilizing public funds
5. Require ongoing measurement and verification
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Source: JCI Institute for Building Efficiency
QUESTIONS AND DISCUSSION
 Contact Information:
Katrina Managan
katrina.managan@jci.com
 Additional Resources
– Energy Efficiency Indicator Global Results
Institute for Building Efficiency
– Unlocking the Building Retrofit Market: Commercial PACE
Financing
Institute for Building Efficiency
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