Energy service companies (ESKO) are a familiar business direction in Western countries, which provide clients with energy saving solutions, obtaining funding from saved energy. These businesses help to improve energy efficiency in buildings, whose landlords do not have the available funds for capital investments, undertaking the client’s investment risks and guaranteeing that energy efficiency measures will not generate additional costs and will deliver return on investment!
The energy service offered by Mesh
Mesh BMS is a solution designed to boost energy efficiency, so we have a duty to create a model for clients in which we as a company offer to improve clients’ properties without risk or investments. However, in order to achieve this, installation of hardware is not enough – it must be appropriately regulated and maintained. Moreover, not only within radiator or heated floor units, but also via ventilation and heating units. We call this Mesh Energy Service for Heating (MESH), which is a complex service that can be divided into three stages: audit, modernisation and maintenance.
Keeping track of a client’s buildings and identification of missing apparatus for the provision of a service. The basis, of course, is Mesh BMS, but replacement or improvement of ventilation controllers or circulation pumps may also be necessary, along with heating system reconstruction work. Total cost estimates and assessment of the potential saving.
Assembly of identified apparatus and fitting buildings with the Mesh BMS system. Modernisation can also be implemented during the heating season, without hampering the use of the building. All jobs carried out during this stage and installed hardware are considered to be energy efficiency capital investments, which will be paid out from the resultant savings during the maintenance phase.
Long-term heat regulation service or provision of a service that includes:
- building monitoring with a thermographic camera and making recommendations;
- boiler or thermal unit regulation;
- individual radiator regulation;
- heated floor regulation;
- ventilation equipment regulation;
- purchase of all necessary Mesh BMS licenses;
- delivery and replacement of Mesh BMS hardware batteries.
The maintenance service is provided for a set monthly fee, which is withheld from the resultant savings. The goal of the service is to ensure constantly comfortable conditions in the client’s buildings within the parameters of the occupancy of the building, which are agreed in the agreement. Another significant component of the service is monthly reports, which reflect estimates of the attained saving, allowing the client to keep track of the usefulness of the energy service.
How are payments for the energy service made?
In the course of the audit, the heat consumption of the client’s buildings in past years is recorded. This consumption is used to determine the historical cost level. It is not expected that this level will be exceeded. As soon as the service phase begins, the client receives a monthly report on the difference between actual consumption and historical cost levels, or in other words, the resultant savings. The resultant savings are used to cover the following costs:
- Service fee.
- Unpaid capital investment interest payment.
- Repayment of capital investment.
- When the capital investment has been paid in full, paragraphs 2 and 3 will be deleted and the client will keep the savings.
- If the capital investments are not repaid during the service agreement term, the agreement may be extended or a final settlement invoice for the remaining capital investment will be issued at the end of the agreement.
Requirements for clients to apply for the energy service
Bearing in mind that the introduction and maintenance of ESKO also consists of administrative costs, introducing an energy service in small projects can turn out to be financially impossible. Therefore, the scope of the project should be assessed at the outset. We recommend that the ESKO model should be considered by clients that manage a building portfolio with a total area of over 30,000 m2 with an average thermal energy consumption of over 100 kWh/m2. We encourage smaller clients to still approach us for a consultation – we will inspect your buildings, and, perhaps the costs will not be that big that it cannot be implemented without the energy service financial model, while we can offer service similar to the way we do it in the case of the energy service.