Pay As You Save Finance Model
BHESCo’s ‘Pay As You Save’ model uses money raised from our shareholders to buy and install renewable energy and energy efficiency systems in the local area. We do this at no upfront cost to the customer in order to make renewable energy accessible to everyone. We typically work with schools, community centres, and local businesses.
Once the new technology is installed and operational, customers pay BHESCo back over a set lease period from the money they save on their annual energy bills. Customers save more on their energy bills than they pay for the lease. They pay back enough to cover the cost of the installation plus the 5% interest that goes to our shareholders who have used their savings to ethically invest in community energy.
There are two variations of the ‘Pay As You Save’ model:
Power Purchase Agreement
We take the risk away from you because we own these systems and operate them on your behalf. We do this through a Power Purchase Agreement (PPA) where you buy the electricity or heat generated by the system we install for a discounted tariff. This saves you money immediately, helping you to transition to your own energy generation once the agreement is paid off.
The saving is made as we charge a cheaper price per kilowatt (kW) on the energy from the generation, if a renewable source is installed. The interest we charge is also reinvested in energy saving improvements and renewable energy micro-generation in the homes and businesses of our customers. This helps them save money now and into the future by creating a sustainable, long term solution.
Energy Saving Agreement
We also install energy efficiency measures using the same Pay As You Save Model. We install energy monitors to help us understand your energy consumption. We then retrofit your property and link the energy savings with the repayment of the upfront cost that we have financed on your behalf. This way you are saving immediately, without having to pay any money upfront. After the Energy Savings Agreement is paid off, you achieve deeper savings from the measures that we have installed.
How It Works
- We prepare an energy survey of your property, advising how you can reduce your fuel bills and how much it would cost to install the suggested energy saving measures, including renewable generation.
- We prepare an approximate quote of how much your fuel bills will be reduced by installing the initiatives.
- You decide what measures you would like installed, and we will project manage the installation for you.
- After the new measures are installed, BHESCo will continue to monitor your energy bills to ensure the measures are performing and you are receiving the energy savings anticipated.
- You pay us for the cost of the work over time, at a rate that is equal to or less than the savings that you are enjoying.
- We charge you just 5% interest.
- You get a warm property, use less energy, and pay less for the energy you do use.