Ecosave Inc. is an energy efficiency services company providing turnkey design, engineering, construction, management, and maintenance services for mid-sized commercial customers through an energy services agreement (ESA) model. NYGB is committing $2.0 million alongside capital from NYCEEC to finance an ESA between Ecosave and the Hebrew Home at Riverdale, a senior care facility in the Bronx. Using NYGB capital, energy efficiency improvements including LED lighting retrofits and HVAC upgrades will be installed at no upfront cost to the customer, and a portion of the resulting energy savings will be used to repay the lenders over time.
This transaction establishes greater performance history for energy efficiency projects with medium-sized, unrated, commercial and industrial (“C&I”) customers, an asset class that historically has reduced access to commercial capital. The installation is expected to reduce at least 560 metric tons of GHG emissions annually or 8,460 metric tons of GHG emissions over the 15-year project life. The transaction will help to demonstrate viability of the ESA model, drawing new investors and financial institutions into the marketplace. This fits within NYGB’s strategy to increase liquidity and drive additional volume in the NYS energy efficiency sector, ultimately lowering the cost of capital for energy efficiency retrofits.
