10/05/2016 – Lifting the lid on… Energy Savings ‘Guarantees’

As a Business Development professional I spend most of my time talking to engineers, facility managers, sustainability leaders and business owners across many industries, from small companies to multinationals. Although concerned with different interests, they share a common opinion on one thing – A deep rooted suspicion of the word “guarantee”.

So deep is this mistrust that I’ve learned to avoid the term completely in my communication with potential clients. This might seem strange given that Crowley Carbon verify energy savings according to industry gold standard, but in my experience the word ‘guarantee’ has sadly become synonymous with the following:

“….They must be desperate for a sale…”
“…I’ve heard that one before and it was just a trick…”
“….yeh, yeh – but the fine print says differently….”

Nowadays it seems like it doesn’t matter how cast iron your guarantee is – customers just don’t want to know. And energy efficiency companies come across as little more than dodgy second hand car salesmen, pushing questionable products and meaningless promises.
So let’s set the record straight – what do WE mean by Guarantee?

At Crowley Carbon we mean that should we fail to deliver the energy savings set out and agreed upon in our contract we will pay the customer the difference. Of course, the next point becomes one of measurement. How are the energy savings measured and who is doing the measurement?

The International Performance Measurement and Verification Protocol (IPMVP) defines standard terms and suggests best practice for quantifying the results of energy efficiency investments. The purpose of the IPMVP is to increase certainty, reliability, and level of savings; reduce transaction costs by providing an international, industry consensus approach and reduce financing costs by providing a project with a Measurement and Verification Plan (M&V Plan). Crowley Carbon abides by these protocols with the aim to provide a basis for demonstrating emission reduction and delivering enhanced environmental quality. It also provides a basis for negotiating contractual terms to ensure that an energy efficiency project achieves or exceeds its goals of saving money and improving energy efficiency. This, in other words is the holy grail of savings guarantees.

Once accurate baseline data has been established it is a simple exercise to measure energy consumption and link this to demand (or production) and atmospheric conditions to establish the energy savings achieved. This is all done automatically by our Cynergy cloud intelligence platform, where all real-time and historical data are visible.

The main benefit of IPMVP, is that it can be independently examined, should an outside auditor need to verify savings or an investor needs to look at a company’s financial health and managerial prowess. Taking clearly verified energy efficiency as a business metric demonstrates how well the company is using its resources. And that, after all, demonstrates management’s ability to be forward thinking in devising an overall LEAN strategy for success.

To find out more about guarantees that will actually save your company time and money Contact Crowley Carbon today.

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