Vancouver’s Greenscape Capital, which deals in sustainable construction and retrofit projects, released financial data Friday morning showing how it plans to make money from one of its retrofit projects.
Greenscape Capital, which provides preliminary consultation and project financing, enters into an “energy savings participation structure” with each client. These contracts are targeted to create income for Greenscape over two- to eight-year periods.
Based on the contract it signed to retrofit parking lots for Robbins Parking, Greenscape receives 100% of the energy savings for the first 24 months, post-installation. Robbins retains all of the energy savings generated thereafter.
Greenscape estimated that the return on its net invested capital in the project would amount to a gross profit of roughly 248% over 24 months. Its total payback period on capital exposed is expected to be less than seven months.
Initial data from the project shows that 64% of project costs are being recaptured through government and utility incentive programs. Approximately $1.74 of pure energy savings per year are created for every $1.00 of net costs.
BIV readers will recall that Greenscape is a strong supporter of Vancouver Mayor Gregor Robertson and Virgin’s Richard Branson’s carbon war room initiative that sees cities compete to reduce their carbon footprint.