Energy Performance Contracts (EPC)
...is a model that uses future cost savings from reduced energy consumption to repay the cost of installing energy saving measures.
Sedania is keen to invest in the transformation of your buildings and facilities into high energy efficient operations. Your transformation includes building retrofits, upgrades, replacements and installations of energy efficiency equipment.
In short, Sedania will take care of everything from audit, design, equipment, installation and even maintenance, ensuring that you would not have to spend on anything. Our investment will subsequently be recouped from the future energy cost savings we achieve.
An EPC is therefore an innovative financing mechanism, where instead of an outright purchase (CAPEX), the Building retrofit is financed through future energy cost savings.
Who Is The Biggest Winner?
This Shared Savings Concept is great because it enables companies to get a free upgrade of their systems and buildings. These new upgrades reduce Operating Costs and provide better reliability, comfort and safety to operations.
This model makes your decision to upgrade and save energy much easier.
And the biggest winner is our environment as our new equipment reduces carbon emissions on average by 25-35%.
Benefits in Bullets
No capital expenditure
No financial risk
Sedania is a Partner, not a vendor or contractor
Paying for results instead of equipment
Minimum performance guarantee
Holistic and Comprehensive Energy Saving Approach
Technology & Vendor agnostic
Our Achievements Today
Tons of C02
How Does An Energy Performance Contract Work?
A legal agreement between Sedania and your company would be executed in which Sedania commits its own expenses to retrofit your building/facility with new, high energy efficient equipment (e.g. your chiller system / air-conditioning); and you (the building owner) commit to paying Sedania a portion of the achieved energy cost savings every month throughout the contract period - in other words, you share the achieved savings with Sedania ("Shared Savings Concept").
How To Calculate the Achieved Energy Savings?
Before we start our installation work, we agree on a Baseline consumption - which is your current average monthly energy consumption based on your TNB bills.
After we have completed our installation work, your TNB bill should show a clear reduction in kilowatt-hours (typically 20-35%). Your new energy consumption will be compared to the Baseline and the difference is the achieved energy saving.
Typical Salient Terms:
Contract Period: 7-10 years
Minimum Energy Saving Guarantee: 10-15%
Saving Sharing Rate: 70-90% for Sedania
Maintenance & Warranty: included/free
This chart shows the financial implications in a typical Energy Performance Contract. In the beginning, Sedania invests and pays for all project costs. After the completion of installations, the client enjoys an energy cost reduction of 20-35% of which 70-90% are EPC expenses (red bars). The remaining 10-30% (green bars) is the net operating cost reduction for the client. After the expiration of the contract (7-10 years), there would be no further EPC expenses and all (100%) energy savings remain with the client.