Graybar PowerSmart Offers a Solid Financing Solution

March 10, 2014 at 10:29 am  •  Posted in News  •  0 Comments

Upfront costs are a major concern for businesses considering an energy efficiency project. It is Graybar Financial Services® goal to minimize these upfront costs so that business owners, both small and large, can invest in their energy efficiency projects.

Graybar Financial Services can help the average business owner get past a number of barriers that stand in the way of energy efficiency cost savings, including:

  • High up front capital cost
  • Long payback periods
  • Uncertainty of savings
  • Limited capital availability
  • Utility incentives

“Commercial banks have less interest in directly targeting the financing opportunities in the small-scale commercial energy efficiency sector for many reasons. The primary issue is the small size of the loans. In reality, most energy efficiency loans are less than five million dollars and more typically, well under one million dollars.”

-American Council for an Energy Efficient Economy, 2011

The good news is that Graybar Financial Services is not a Bank! Facilitating a small-size financing solution for energy efficiency projects is our specialty.

Graybar Financial Services can help a customer manage cash flow when financing an energy efficiency project. In some cases, it’s even possible to structure monthly financing payments to be less than the energy savings – providing customers with positive cash flow or make the project “budget neutral”.

Graybar Financial Services offers 100 percent project financing solutions, allowing you to bundle charges related to hardware, software and services into a single, monthly payment.

The numbers speak for themselves.

LED High-Bay ROI

LED ROI / Simple payback example – warehouse application

Annual energy costs $277,177 $57,099 $220,078
Annual maintenance costs $26,186 $- $26,186
Total annual savings $246,264
Without utility rebate $726,250 $246,264 2.9 years
With utility rebate $601,250 $246,264 2.4 years
Total annual savings $246,264


Cash flow positive project financing example

Total project cost without utility rebate $726,250
Financed cost with utility rebate $601,250
Monthly Savings (annual savings $246,264 divided by 12) $20,522
Monthly financing cash flow analysis 36 Months 60 Months
Projected monthly savings $20,522 $20,522
Monthly payment $18,290 $11,582
Estimated monthly cash flow $2,232 $8,940


Picture a 500,000 square-foot warehouse facility, with both open areas and racked aisles. It’s buzzing with 1,250 HID fixtures, operating 14 hours a day, six days a week at .11 kWh.

That’s a pretty hefty bill.

Now, imagine replacing every outdated HID fixture with an energy-efficient  LED fixture, and adding motion sensors for racked aisle areas. With the amazing efficiency of LED high bay luminaires, you’d see a remarkable difference in operational costs, plus significantly reduced operation time – with no effect on your productivity.

Make the switch–it’s the easiest calculation you will make.

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