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Sustainable Energy Services Agreement (SESA)

Category: Energy Supply

The Sustainable Energy Services Agreement (SESA) is a pay-for-performance, climate-positive financing solution that allows colleges and universities to implement multi-measure energy efficiency (EE) and clean energy projects with zero upfront capital expenditure. Similar in structure to a power purchase agreement (PPA), the SESA is a flexible way to improve operations, save energy and money by consolidating upgrades into one simplified contract.

Benefits

  • No upfront costs: Retrofits are financed by a third-party asset owner (SESA provider) who is paid based on measured savings.
  • Off-balance sheet solution preserves debt capacity.
  • SESA projects bring immediate savings and can reduce your carbon footprint by thousands of metric tons.
  • The SESA is a flexible solution that can fund any type of asset that saves electricity, natural gas, fuel oil and water. EE, Solar, battery storage, and EV chargers can be built into a single SESA project.

Challenges

  • Project development can be complex, take time to implement and involve multiple stakeholders on campus.
  • Market confusion and lack of awareness about “as a service” offering.

Impacts

  • GHG Impact

    Large

    SESA projects bundle measures to drive deeper energy savings, delivering large GHG reductions.

  • Economic Impact

    Net Savings

    Cash flow positive, off-balance sheet and no upfront costs.

  • Feasibility

    Doable

    SESA contractual model works in every state and is best suited for campuses with approximately 1,000 students or more.

  • Timeline

    < 1 year

    The development timeline varies from 6 to 12 months depending on the project scope.

  • Maintenance

    Low / None

    Selected maintenance services are typically included in SESA projects based on what works best for a campus and its facility team.

  • Publicity

    That's really cool

    SESA projects create and encourage multiple opportunities for publicity and engagement (learning opportunities) with students.

Experts

  • Dustin Braun Metrus Energy Contact
  • John Jackson Metrus Energy Contact