Retailers have already developed models to continuously increase the amount of financing for energy projects or the likelihood of success. See how some companies have overcome the typical challenges of financing energy projects at retail companies.
adidas Group established a dedicated "greenENERGY" fund to invest in energy efficiency and renewable energy projects to overcome existing project financing hurdles. Between June 2012 and November 2015, $5.5 million has been spent on 49 projects with a forecasted IRR of 33%.
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Belk reduced its in-store energy consumption at a single location by more than 27% after retrofitting the lighting system with LED lights. After seeing the project firsthand, executives approved a redesign of Belk’s entire lighting infrastructure.
Best Buy uses a rolling portfolio-wide lighting retrofit program using maintenance funds instead of capital budget by only making efficient store lamps available through their online catalogue. Since the program’s 2012 inception, 13,174 lamps have been replaced with more efficient LED or fluorescent options across the building portfolio.
Kohl's worked with its Finance team to develop an Energy Finance Strategy, establish an annual "new technology" budget to test emerging technologies, and hire a Financial Analyst liaison to expedite expense requests.The “emerging technologies budget” allows Kohl’s to pilot 2-3 new programs for 10-20 stores per year.
Regency Centers partnered with Trader Joe's to install a 253 KW solar photovoltaic system that offsets more than 65% of the store's energy use, at no installation or maintenance cost to Trader Joe's.