Two years ago, local media reported that in just 13 minutes the Energy Affairs Administration had used up the $4 million set aside for residential and commercial renewable energy projects. The agency was flooded with proposals in the blink of an eye, which shows that green initiatives have captured the attention of businesses and citizens alike.
What you should know about renewable energy
There are many ways to ensure that the money you spend on energy is as efficient as possible. Toward that end, Jorge Aldarondo Pérez, Executive Vice President and Director of our Corporate Credit Division of Banco Popular, says that every business person should take a close look at energy costs with efficiency and generation in mind. Efficiencies are conditions that allow a business to move toward a more appropriate use and consumption of energy, while generation is the ability to produce energy using solar power after applying those efficiency measures.
In the case of Banco Popular, the institution links customers interested in renewable energy with businesses that specialize in designing and implementing these projects. It also finances solar panels and efficient lighting, refrigeration and air conditioning equipment, among others.
“We encourage businesses to pay attention to opportunities to improve their cash flow by reducing their energy costs, whether through efficiencies or generation,” the vice president added.
What you need to apply for financing
Before a financial institution offers a loan, the applicant must present a plan that includes the estimated costs, materials to be used, studies that support the project and a time table for the installation, with information about the contractors, engineers and technicians. It should also outline how much will be saved on energy costs and how sustainable the savings are. In other words, will it last for more than two or three years.
“It doesn’t make sense to invest in generating electricity in your property without changing the 100-watt lights, addressing the sunlight that is heating your building through glass windows or letting your air conditioning escape. Generating energy from solar power for what, to waste it? This is the wrong use,” explained Aldarondo Pérez.
So while you are transforming your operation to make it more green, be sure that your energy use is appropriate. Once you have improved efficiency, you will be ready to move to green energy generation, the executive said.