Trent Cotney, CEO, Cotney Attorneys & Consultants
When you are working with customers who need a new roof, their primary concern may be the cost. That is understandable since a new roof can be a significant investment. However, there is an innovative way to help your customers offset the cost of that roof. Using the Guaranteed Energy Savings Program (GESP), the roof will pay for itself over several years.
The Guaranteed Energy Savings Program is a procurement and financing system that encourages the installation of renewable energy and energy-efficient equipment by leveraging energy and operational savings to finance the cost. Often the building renewal and retrofit project will incur no net cost increase to the customer. The goals of GESP include promoting the implementation of energy-efficient and renewable energy measures in public facilities and making communities aware of their benefits. Past projects show that state and local governments can see millions of dollars in energy savings each year while simultaneously improving facility infrastructure, reducing energy consumption and curbing carbon emissions.
Public buildings such as libraries, courthouses, city halls, schools and recreational facilities are common choices for the GESP. Most Guaranteed Energy Savings Contracts (GESCs) are issued for construction projects involving HVAC systems, lighting and water conservation. However, these contracts also apply for roofing installation, improvements or replacements. We anticipate that additional stimulus and infrastructure spending bills will encourage GESPs.
A public organization enters a GESC with an Energy Services Company (ESCO). The contract states that the cost savings generated throughout the term of the agreement will be equal to or larger than the payments due under the financial agreement. If the energy savings do not meet or exceed the payments, the ESCO must reimburse the public organization for the difference.
The public entity should see no net cost increase for the project, which means no extra cost for taxpayers. There are also no upfront costs. In addition, the public entity has no risk since the ESCO assumes the risk of both construction and the savings guarantee. The ESCO is accountable for the project and uses best practices for procurement and energy efficiency.
Just as there are energy-efficient appliances, there are energy-efficient roofing materials. A GESC could be applicable for any
of the following systems.
A cool roof is designed to absorb less heat and reflect more sunlight than a standard roof. Cool roofs can be made with highly reflective paint, a sheet covering or reflective tiles or shingles. On a hot summer day, a standard roof can reach temperatures of 150°F or more. On the same day, a cool roof could be more than 50°F cooler. That can lower peak demand on air conditioners by as much as 15 percent.
While asphalt shingles are inexpensive and easy to install, they are not reflective and tend to absorb heat. So, for a cool roof, the ESCO will likely need to use other materials. One option is metal roofing. Although metal can get very hot, it is also highly reflective. Metal panels will direct the heat away from the building below. Another option is tile, which can be made from clay, concrete or slate. Tile is durable and can be treated with reflective coatings. Reflective coatings can also be used on asphalt shingles but might not be as effective.
The solar roof is growing in popularity and can be installed as solar panels or shingles. Panels contain solar cells that convert sunlight to energy. They are placed on top of roofing materials. Solar shingles look more like traditional roofing shingles but are more durable, in addition to having the capability to convert sunlight to energy. These shingles can be more expensive to install than panels.
Solar manufacturing is a very competitive field, so offerings will constantly evolve. Researchers continue to devise ways to make solar cells even more efficient. Some of the more recent technologies incorporate solar dyes, inks, plastics and mirrors.
Although rare in Florida, a green roof, which is also called a living roof, is a plant-covered structure that can reduce heat and help insulate buildings. In addition to lowering energy costs, a green roof can improve air quality, reduce greenhouse gas emissions and
increase HVAC equipment efficiency.
Designing and installing a green roof requires careful planning, but it is worth the effort. Beyond its energy-saving properties, this type of roof provides welcome green space and can even be a place to grow herbs, vegetables and other plants. One potential
Florida alternative to the soil-heavy traditional green roofing model is the use of hydroponic roof systems.
No matter what materials you choose, by using GESCs for your upcoming roofing projects, you can offer your customers a terrific deal. They not only will receive an energy-efficient roofing system but are also guaranteed savings that will pay for the roof over the term of the agreement — and will continue to reduce energy costs, even after the term is over. The owner may also benefit from certain tax credits that incentivize renewable energy systems.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.
Trent Cotney is Board Certified in Construction Law by the Florida Bar, an advocate for the roofing industry and General Counsel of FRSA. For more information, contact the author at 866-303-5868 or go to www.cotneycl.com.
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