Financial Model: Facts + Figures

Can going carbon neutral really be profitable? Absolutely.

Here’s How We Maximize Financial Value.

You can expect to increase building value by $5 to $10 per square foot. How? By capping the guaranteed, ongoing increase to net operating income (NOI) delivered by our energy reductions.

  • No upfront costs or capital expense
  • Positive cash flow in Year 1 and beyond
  • Ongoing, guaranteed revenue for all lease types and owner-occupied buildings
  • NOI increase can be capped at disposition, for increased building value after just one year of service
  • An easy exit is always at hand — if you sell the building, you’ll realize increased value and a net positive outcome

The Drift is Real: Why You Need Ongoing Performance Management

We get it. You don’t think you need it. Typical energy retrofit firms get in and get out with a one-time project, so why can’t we? Because if you just set it and forget it, it will cost you thousands of dollars in lost energy savings within just a couple of years — and a lot more over the long run.

Whatever the cause, drift happens, and only our ongoing monitoring and analysis can detect and solve new issues, ensure ten-year guaranteed results — and mitigate your risk.

Think about the physical and operational shifts that occur in a typical office building over just a few years, let alone a decade:
  • What if your building’s occupancy changes as tenants move in and out?
  • What if a contractor mishandles equipment settings during maintenance?
  • What are the cascading effects of replacing retired or failed equipment?
  • How will transitions in property managers and facility teams affect your building operations?
  • Building systems are dynamic and interdependent — without ongoing monitoring even slight deviations of measures implemented could have a snowball effect that erodes savings
  • As weather anomalies become more frequent, your BMS will not be ready to handle them alone

Buildings are dynamic entities, and you can choose to have either robust, long-lasting performance, or you can allow drift to erode your value.

  1. John Roberts and Bing Tso, “Do Savings from Retrocommissioning Last? Results from an Effective Useful LifeStudy.” 2010 ACEEE Summer Study on Energy Efficiency in Buildings, American Council for an Energy-EfficientEconomy, 2010, pp. 3-339 to 3-347.

Excellent upside no matter when you sell.

An easy exit is always at hand, whether you buy out the contract or the new owner assumes Carbon Lighthouse’s guaranteed savings year after year.

Typical Disposition Scenario
If $X is your annual NOI increase, then $X/cap rate is the increased property value from our service. In a typical scenario, an annual savings of $100k can yield a net value of $1.5MM, or 250% ROI.

Guaranteed Financial Gains for All Lease Types

Depending on your building’s lease structure, we’re able to ensure the landlord benefits from reducing energy use, as well as the tenants.

If NNN / Utilities Paid by Tenants

If tenants pay utility costs, we create a services contract paid by tenants, and then we pay owners rent for ongoing building access and sensor placements. It’s like a cellular antenna lease, but of higher value.

Income to Owner

We pay rental income to owner

Service Cost

Service contract paid by tenants

If Full Service Gross / Utilities Paid by Owner

If the landlord pays all utility costs, then we create a services contract to deliver an agreed upon level of savings.

 

Income to Owner

Full value of savings accrued by ownership

Service Cost

Service contract paid by ownership

The Carbon Lighthouse Mission

Because stopping climate change will only happen if we can make it easy and profitable, together we are engineering new ways to erase the 20% of global emissions from non-residential buildings.

Schedule a 10 minute call now.

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