e3 - The Opportunity
First and foremost: Current TPC clients are looking for additional ways in which to lower their energy costs, therefore E3 is a perfect enhancement to an already satisfied established client base. The model of having multiple solutions for our clients, while at the same time helping our clients save money and be more energy efficient, is a win-win situation. With TPC’s client base, E3 will prosper for a significant amount of time without the exclusive need to cold-call for a new prospect, allowing for the E3 business to grow faster than the average Energy Efficiency business. In addition, being able to analyze and service multiple aspects of energy efficiency gives E3 a competitive advantage over other single-solution companies and provides multiple needs being met within the same client.
Energy efficiency’s largest players grew, even as the economy lagged in recent years. And they show no signs of slowing down, says a report distributed by the National Association of Energy Service Companies, according to the report, prepared by the Department of Energy’s Lawrence Berkeley National Laboratory. After significantly outpacing US GDP, energy efficiency companies are poised to double revenues by 2020. The report speculates that the reason that ESCOs did so well during the economic slump is because of their business model, which spares customers from making large upfront outlays for energy efficiency retrofits. Payment to the ESCOs comes from the energy savings they achieve for a facility.
With E3 projects, typically the cost of the project is less than what E3 is saving its clients, allowing for immediate additional cash flow. This model allows for companies to embrace energy efficiency projects, without having to outlay a large capital expense.
In addition, qualified companies are receiving tax credits, utility rebates, and/or favorable lease terms that make their energy efficiency efforts cash positive from day one. State and federal agencies are providing significant tax incentive and most local utility companies are providing rebates based on proven documented reduction solutions.
Today’s competitive companies know that “Going Green” is not just beneficial to the environment and their communities - it’s also beneficial to their company’s reputation, value proposition and, when done right, it is beneficial to their bottom line. The positive cash flow characteristics combined with the incentives and tax deductions available make investments in energy efficiency one of the safest and highest-yielding investments available in this and any economic climate.