SCIenergy Commercial Building Program
Though a competitive bid process, Energy Impact Illinois chose Transcend Equity Development (now SCIenergy, Inc.) to provide energy efficiency capital improvements to large commercial building owners.
SCIenergy offers a unique transaction structure known as a Managed Energy Services Agreement (MESA) that allows buildings to reduce energy usage by 25% without capital expenditure or the assumption of any debt. For the duration of a MESA a building pays SCIenergy the historical costs of utilities, adjusted for rates, weather, occupancy and other parameters. SCIenergy then proposes a set of improvements to building energy systems and operations for the landlord to review and approve, to be paid for by SCIenergy. Improvements typically include deep retrofits (mechanical, electrical, building envelope, and control systems) that create energy savings while still meeting the comfort and service obligations of the tenants’ lease agreements. MESA itself is a GAAP-auditable operating expense under the vast majority of tenant leases that contain passthroughs. SCIenergy earns a return on its investment from the efficiencies generated by these improvements.
The building owner benefits from obtaining all of the SCIenergy provided capital improvements at no cost, boosting yield on the asset. The tenants enjoy the benefit of a substantially improved, more comfortable building with no increase in building expenses. At the expiration of the MESA, the building owner reclaims responsibility for paying substantially lowered utility bills.
If you represent a large commercial building and would like to learn more, contact Sean Patrick Neill, Sean.Neill@SCIenergy.com or (917) 776-6155.