| SHARED SAVINGS |
| A Shared Savings Contract is simple. It basically
says that the customer will be charged a percentage of the
savings that Applewood Energy can bring to the facility
through our audit recommendations. There are three very important benefits to the Shared Savings Program: 1) There are no upfront costs for the business. 2) The clients get to see exactly where they are saving money. 3) The audit fee is not a new expense, but rather a percentage of what has been saved. When a client agrees to pay a percentage of what Applewood Energy can save on their energy use, two important things are happening. First, Applewood Energy has gained the client’s trust. Second, Applewood Energy is bound to the success of our client. In other words, if we find “$0” savings, then we both get a percentage of “$0.” Although it is theoretically possible that we could find “$0” savings for our customers, it is highly unlikely. The customer will save money without having to first pay for our energy audit and report. And if there are no savings, then there is no cost to you. Under our Shared Savings Program, you are charged for our services based on how much we save for you. A typical Shared Savings Contract would charge the customer for two years' worth of energy savings. That means if we find $1,500 in energy savings per year for you, then you would pay Applewood Energy $3,000. When we do your audit, we will come up with a dollar amount that reflects your annual energy savings. We would bill you for our part of the savings from the program on a monthly basis, based on the average savings for each month. At the end of our 2-year contract, you will retain all of the energy savings as profit. You will save that amount on a yearly basis. There are no taxes on these savings - the profit goes straight to your bottom line. The amount you will be paying for our services will be money that you would otherwise be paying to the local utility companies. These yearly savings are equivalent to your business's earning that much more profit every year for the foreseeable future. For example, if you earn $25 per customer as a net profit, the energy savings of $1,500 would be equal to 60 more customers per year, every year, for as long as you are in business. Since Applewood Energy would have a vested interest in you saving money, the contract must be written so your business would be required to implement our recommendations for energy savings. We would join with you in a partnership relationship to assure that the project would be completed and that these savings are realized. You would be responsible for the contracted costs of the materials and labor for the improvements, because they would become the property of your organization. We would provide project management services to assure that the improvements are installed and maintained correctly. |
Our Energy Audit is a focused review of how your facility uses energy.
Potential alternatives will be identified and evaluated that will reduce energy waste and save you money!
After the energy audit has been completed, we will only recommend changes that make good economic sense (without changing the way you do business).
Every business owner wants to save energy and money. Our program will recommend
exactly how to eliminate any wasted energy associated with your particular line of business.
