In this episode of Smart Energy Voices, Trevor Joelson, Enterprise Energy Services Account Executive at Trane, explores how organizations can secure funding for energy and sustainability projects by aligning proposals with business priorities and stakeholder needs. He outlines several innovative funding sources and strategies and the impact of stacked incentives from federal, state, and utility programs that can make it easier to embed sustainability into an organization. Throughout the presentation, Joelson emphasizes the importance of understanding the larger goals that drive organizational decisions, such as profitability, safety and reputation — encouraging sustainability professionals to become effective connectors across business units.
You will want to hear this episode if you are interested in…
- Successful funding strategies for energy and sustainability projects (08:38)
- Stacking incentives to improve project economics (16:34)
- Importance of understanding organizational priorities (23:09)
- Case study of EnerSys’ corporate leadership (27:12)
Funding Sources for Energy and Sustainability Projects
Joelson breaks down the financial dynamics that drive decision-making for energy and sustainability investments. He explains the importance of understanding a company’s weighted average cost of capital (WACC) and how that benchmarks investment opportunities. He categorizes companies into three general expectations for rate of return and describes how each level impacts the feasibility of funding energy projects, either internally or through third-party financing. Joelson also highlights how third-party financing can fund projects and also trigger internal competition, as CFOs may choose to finance viable projects themselves once they see outside interest. With nearly $900 billion raised in the last decade for the energy transition, Joelson underscores that substantial capital is available if projects can deliver the right returns.
Making Energy Projects Viable Through Incentive Stacking
Joelson explores the abundance of “free money” available to support sustainability projects, ranging from tax credits and grants to utility incentives, and how organizations can leverage these to make their projects cash flow positive. He provides several state-specific opportunities, including Pennsylvania’s RISE PA grant for industrial decarbonization, Las Vegas’s $1,500-per-ton incentive for switching to air-cooled systems and New York’s Clean Heat Program, which provides $70 per MMBtu avoided for electrification efforts.
Trevor also highlights how stacking incentives like grants, tax credits and utility rebates can make renewable projects like solar and geothermal financially viable, even in lower-cost energy markets. He discusses innovations in geothermal technology such as inclined bore fields and groundwater heat exchange systems, which are reducing both costs and space disruptions to make geothermal a more accessible and attractive path toward electrification.
Aligning Sustainability with Enterprise Goals
Joelson emphasizes the insight that energy and emissions reductions are not end goals for most organizations but means to achieve broader business objectives. Through stories and case studies, he underscores that sustainability professionals must align energy projects with strategic organizational ends like profitability, safety and risk mitigation. Trevor highlights the need for sustainability leaders to act as connectors across departments, tailoring business cases to resonate with diverse stakeholders. A case study of EnerSys illustrates how integrating sustainability with core business strategy via tools like internal carbon pricing and a revolving green fund can unlock funding, demonstrate ROI and support long-term decarbonization goals.
Resources:
- Presentation Slides: “Stop Saying You Can’t Find Money for Energy & Sustainability Projects”
- EnerSys Climate Action Plan Roadmap
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