Making Energy Efficiency Pay

MMA Renewable Ventures is a San Francisco firm that finances and owns massive rooftop solar arrays for companies that want to power their operations with green energy but don't want to shoulder the considerable capital outlay of installing such systems. Today the MMA Renewable Ventures (MMA) is launching a new business to finance energy efficiency projects. The target: mid-sized companies - regional retailers, grocery stores, manufacturers and the like - that want the benefits but not the expense of high-efficiency lighting, energy-conserving heating and cooling systems and other technology. Here's the deal: MMA Renewable Ventures will conduct an assessment of a client's operations and then arrange for the installation of energy-efficient systems. In return, MMA Renewable Ventures receives a fee based on the resulting energy savings. "The customer takes a look at what they’re spending for energy knowing full well they have equipment in their building that's not being used efficiently," MMA Renewable Ventures CEO Matt Cheney tells Green Wombat. "All the customer wants is saving and doesn’t want to own equipment. We guarantee a certain amount of savings." MMA Renewable Ventures also will do deals where it shares the money saved on energy costs with the customer, who takes ownership of the equipment at the end of a multi-year contract. Cheney says MMA Renewable has "a pipeline of clients" but declined to identify them.

Cheney acknowledges that energy efficiency isn't as sexy as solar but says its a wide-open market, given rising electricity costs and growing pressures to reduce greenhouse gas emissions. It's also national market, with state incentives and tax breaks for companies that make energy efficiency improvements.