Guide for Funding and Financing Energy Efficiency Projects in Nova Scotia s Not-For- Profit Organizations AUGUST 2015
Table of Contents 2 4 4 4 5 5 5 6 6 7 8 8 9 10 10 12 Introduction Efficiency Nova Scotia Eligibility Funding Sources Colchester Community Grant Community Forward Fund Assistance Corporation District of Lunenburg Community Grants Environment Canada s EcoAction Community Funding Program The Halifax Municipal Community Grants Program Jackman Foundation McCain Foundation Other Places to look Applying for Funding Typical Application Process Glossary If you want even more information on energy efficiency and/or the Ecology Action Centre, contact us directly: 2705 Fern Lane Halifax, Nova Scotia, B3K 4L3 Phone: 902 429 2202 Email: info@ecologyaction.ca Fax: 902 405 3716 PHOTO CREDITS: Dr. Solar/Scotian Windfields/Efficiency Nova Scotia/The Ecology Action Centre
Introduction This is a guide for not-for-profit organizations looking for ways to fund and finance energy efficiency upgrades. Organizations can use this guide as a first step to access and obtain funding for such projects. Many organizations are concerned about the energy efficiency of their buildings but their resources are often limited. Through this guide, the Ecology Action Centre hopes to help reduce the barriers to energy efficiency for not-for-profit organizations. Energy efficiency is the most cost effective, socially beneficial, and attainable way for society to change our electricity system in order to fight climate change. It can help not-for-profit organizations save money by reducing their energy bills, make their buildings more comfortable, and contribute to the health and sustainability of their communities. Resources like funds, staff time, and maintenance costs saved through energy efficiency can be redirected to the programs and services offered by not-forprofit organizations to their communities. Many not-for-profit organizations are already working to improve society and energy efficiency is another way for them to contribute while also receiving direct financial benefits. Did you know? Nova Scotia has one of the most carbon intensive electricity systems in Canada. For every kilowatt hour created, 692 grams of Carbon Dioxide Equivalent enters the atmosphere. That s like driving almost 2.5 kilometres in an average sized car. 2
Introduction RENEWABLE ENERGY Remember the pyramid of energy conservation! Start from the base and build up. INCREASED COMPLEXITY AND INVESTMENT WINDOWS HEATING & COOLING WATER HEATING INSULATION & VENTILATION APPLIANCES AIR SEALING LIGHTING LOW COST/NO COST UNDERSTANDING Several ways organizations can increase their energy efficiency include: Improving the building envelope with air sealing and insulation Investing in an efficient heating systems Replacing or eliminating inefficient appliances Decreasing the amount of electricity used for lighting Lowering water usage Monitoring electricity usage Some energy efficiency projects may not require funding. For example, draft proofing is a simple task that can be filled by some competent and capable volunteers. There are lots of resources available online for do-it-yourself energy efficiency upgrades like draft proofing or installing insulation. A good resource for such projects is published by Natural Resources Canada and called Keeping the Heat In. If you re more inclined to watch a video than read instructions, many short videos are also available online for your upgrade of choice. It is also important to note that before you approach new funders for your efficiency upgrades, your organization should reach out to your current supporters and funders. If you have any questions about this resource, call the Ecology Action Centre s Energy Action Team at (902) 442-0199. 3
Efficiency Nova Scotia Efficiency Nova Scotia offers funding or financing for electricity saving studies and retrofits. Efficiency Nova Scotia s services include rebates or funding for efficient lighting, appliances, installation services, as well as incentives for consultation services. Consultation work can include scoping and feasibility studies. Efficiency Nova Scotia is also an excellent resource if you have questions about efficiency. They have personal energy planners and a variety of online resources to help you make the best decision. Eligibility At the present time, Efficiency Nova Scotia only provides rebates and incentives for electrical savings. For an updated list of requirements to meet eligibility criteria for a scoping study rebate download the application from Efficiency Nova Scotia s website: efficiencyns.ca General Inquiries Toll Free 1-877-999-6035 Email: info@efficiencyns.ca Available Monday to Friday from 8 am to 5 pm (AST) Did you know? How is a scoping study different from a feasibility study? A scoping study is a basic study to look for opportunities to save energy, and may include estimates of how much the savings will be. A feasibility study takes longer than a scoping study and includes more calculations to define the savings, costs and payback of energy saving opportunities. 4
Funding Sources This section describes some grants, loans, and financing programs available to not-for-profit organizations to increase the energy efficiency of facilities. An energy assessment as part of a scoping or feasibility study may be required to qualify for grants. Some applications will fund energy assessments or studies. Energy assessments and energy models help bolster the case for making upgrades by providing more accurate estimates of fuel, electricity, and dollar savings. Colchester Community Grant Focus is given to capital projects, program expenses remain eligible but operating costs are not eligible. Major requests for projects greater than $10,000 may receive up to 50% of the total cost of the project. Groups must show ability to match funding. Minor requests for projects of less than $10,000 may receive up to 100% of the total cost of the project. Groups must show financial need. Deadline for applications is January 1st of every year. Colchester Recreation Office Phone: 902-897-3185 Email: recreation@colchester.ca Fax: 902-843-4065 Website: colchester.ca 5
Funding Sources Community Forward Fund Assistance Corporation The Community Forward Fund tailors loans to individual clients based on their financial needs. Their loans can help charities and non-profits: Expand programs or grow earned income Purchase, build or renovate a building Purchase or upgrade needed equipment Manage timing of foundation or government grants or from donations, capital campaigns or other revenue such as ticket sales from arts exhibitions. They also provide financial review and coaching services and assessment tools to help build financial skills and capacity in the non-profit and charitable sector. Contact Information Phone: (613) 366-1169 E-mail: smacneil@communityforwardfund.ca Website: communityforwardfund.ca District of Lunenburg Community Grants Major Recreation Capital: to provide assistance for the expansion or improvement of an indoor or outdoor cultural, social, heritage and/or recreation facility and/or equipment for capital projects of $10,000 or more. Community Recreation Capital: to provide assistance for the expansion or improvement of an indoor or outdoor cultural, social, heritage and/or recreation facility and/or equipment for projects under $10,000. Website: modl.ca Phone: (902) 541-1333 6
Funding Sources Environment Canada s EcoAction Community Funding Program This program provides financial support to community groups for projects that have measurable, positive impacts on the environment. Funding support may be requested for projects that have an action focus to improve the environment and increase environmental awareness and capacity in the community. Annual deadline for applications is November 1. Draft applications may be submitted for discussion. It s highly advised that organizations contact the EcoAction Community Funding Program to discuss their application before it is submitted. EcoAction Community Funding Program (Que, NFLD, NB, NS and PEI) 45 Alderney Drive, 16th Floor, Queen Square Dartmouth, Nova Scotia B2Y 2N6 Phone: 902-426-8521or (toll-free) 1-800-663-5755 Fax: 902-426-2062 E-mail: ecoaction.atl@ec.gc.ca Website: ec.gc.ca The Halifax Municipal Community Grants Program The Community Grants Program is a centralized program that provides annual cash grants to registered non-profit organizations and charities located throughout the Municipality. There are two types of grants: (a) a project grant of up to $5,000 and (b) a capital grant of up to $25,000. Capital grants of up to $25,000 are available to finance the purchase of buildings, land, and large equipment. Projects eligible for funding include energy efficiency initiatives like heating, light, ventilation, water use reduction, insulation, windows, doors, foundation, roof, electrical wiring upgrades, and plumbing. Preference will be given to code compliant projects, public safety, and energy saving and recycling. This grant is only available to non-profit organizations in Halifax. 7
Funding Sources The Halifax Municipal Community Grants Program opens in January of each year with an application deadline of March 31st. Website: halifax.ca/boardscom/bccgrants/communitygrantsprogram.php Phone: 902-490-7310 Jackman Foundation The primary purpose of the Foundation is to make donations to charitable organizations, education, social welfare, health causes, religious groups, Canadian culture and heritage, and the media arts in Canada. Type(s) of Support: Building funds Capital expenses Emergency funds Equipment funds Matching funds Program funding Seed / start-up funding Special project funding Support for ongoing operating costs / overhead Grant range: $500 - $1,000 Laura W. Mayne, Secretary-Treasurer Phone: (416) 366-8573 McCain Foundation The McCain Foundation focuses its donation particularly on organizations in Atlantic Canada and gives to projects that fall into one of the following five categories: Education,Health and Welfare, Civic Projects, Arts and Culture, and the Environment. They consider donation requests four times a year. Website: mccain.ca Email: donations@mccain.ca 8
Other places to look Consider approaching local Rotary Clubs, credit unions, and banks. Many of these institutions are interested in helping local charities. A phone call to arrange an in-person meeting or presentation is a good way to start conversations with any of these institutions. Credit Unions tend to have a community-oriented mandate that fosters community investment programs. For example, the Credit Union Atlantic has a special loan program for not-for-profit organizations under their Small Business Loan Guarantee Program. Your organization might even want to consider a crowdsourcing campaign on a website like Indiegogo of GoFundMe. Crowdsourcing campaigns enable communities to contribute to the success of your project by making a donation that is comfortable for their financial situation. Energy efficiency has very tangible benefits. Selling your case well, showing that you ve put in the leg work to find the best solution for your building and emphasizing that donating to fund energy efficiency as the gift that just keeps giving will help your organization s appeal for funding assistance more compelling. We will dig into this further in the next section. 9
Applying for funding Energy efficiency is a win-win-win investment. Energy efficiency benefits not-for-profit organizations by reducing building operating costs, decreasing pollution, and also enhances the reputation of a socially responsible organization. To ensure that you find funding to support your efficiency upgrades, the following outlines what a typical application process might look like. Typical Upgrade and Funding Application Process 1. Completing an energy audit If possible, have an energy assessment completed or an energy model created with calculated savings. Ensure figures for dollar and electricity savings are included to help establish payback. 2. Identifying and investing in the energy efficiency solution that is best to invest in immediately When investing in energy efficiency it s best to start saving immediately. Start with the projects that are the easiest to implement or have the shortest payback period. If your assessment did not include estimated cost of upgrades, collect quotes from local contractors. Using the figures from your energy assessment, list the upgrades in order of shortest to longest payback. 3. Developing the business case. It s important that you can explain the high financial returns that will result from the upgrades. A very useful tool to calculate the return on investment and to help your organization decide whether to invest in energy efficiency now or later can be found at the Energy Star website by searching the Cash Flow Opportunity Calculator. As mentioned before, the sooner you invest in energy efficiency, the sooner you can start saving and reducing your greenhouse gas emissions. Most funders want to know that you chose the best price or best quality of work for the job. Grants typically require at list 3 bids to show that your organization did its due diligence in choosing a contractor or service provider. 10
Applying for funding The Appraisal Institute of Canada recommends pursuing retrofits or renovations that can provide long lasting building improvements in the range of ten to fifteen years 1. However, regular maintenance is as important as the initial investment required in the selection of a project. When applying for funding, not-for-profits need to communicate these expected economic benefits to make a stronger business case. Other benefits resulting from energy efficiency projects that should be included in the business case are the increased comfort and well-being of yours staff and volunteers. For example, as a result of improvements to the building envelope or heating system your more comfortable staff can better support the mission of the organization 2. Investments in energy efficiency can also increase the value of not-for-profits building facilities. 4. Presenting your request for funding support. Whether applying for a grant, asking a foundation for funding, or doing a presentation to a local community group that might be able to help you out, there are lots of approaches to finding funding or financing for your project. Start with the avenues with which you are most familiar. If there is a certain foundation that already funds a lot of your work, start by presenting your case to them. Tell a story about the reasons why the upgrades are important to your organization. How will it benefit your organization s services and people? Will it increase the services offered? Will it mean that you are able to maintain or increase your current hours of operation? Will it help you become Carbon Neutral? Is there an educational component? All of these questions can help make your case for support more compelling. You may also want to present case studies of other organizations that have invested in energy efficiency. Case studies can be found on the Ecology Action Centre or Efficiency Nova Scotia s websites. 1. http://www.aicanada.ca/wp-content/uploads/renovation-tips-appraisal-insititute-of-canada-april-20131.pdf 2. A Borrower s guide to increase the bottom line using energy efficiency: http://www.nrel.gov/docs/fy15osti/62960.pdf 11
Glossary Energy Audit A report generated by a licensed professional who is specially trained to examine your building envelope and your heating and cooling systems. An energy audit will make recommendations to improve a building s energy efficiency and lower energy costs. Payback Period The length of time required to recover the cost of an investment. The payback period of a given investment or project is an important determinant of whether to undertake the position or project, as longer payback periods are typically not desirable for investment positions. Calculated as: Payback Period = Cost of Project / $ Gain from Investment Return on Investment (ROI) A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio. The return on investment formula: ROI = (Gain from Investment Cost of Investment) / Cost of Investment 12