Self funding 101

Internal funding may be undertaken by businesses that have both the capacity to raise funds for energy upgrades, and have made a strategic commitment to continuous improvement in energy performance.

Self-funding upgrades enables businesses to capture the full economic benefit of energy management and may be appropriate where the business cannot seek external funding due to debt limits or other restrictions.

CapEx is likely to be used for projects requiring the procurement of new equipment that has a multi-year payback, whereas OpEx may be used for projects that that are relatively inexpensive, that have less than one year payback. Both of these options require clear lines of communication and strategic planning between the energy and finance teams.

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