New energy business will install panels for free and then sell electricity to client to meet the cost
Bam鈥檚 newly-launched energy business will offer clients free solar panels and sell them the low-cost electricity generated.
The division鈥檚 interim managing director Reid Cunningham said the division - which launched last month and is named Bam Energy 鈥 will initially work alongside Bam鈥檚 facilities management business to advise its clients on installing renewables and improving their energy efficiency.
Bam Energy is targeting securing 拢1m of work during 2016 and will work on Bam鈥檚 projects in the public sector and commercial sector, helping clients design and fund renewable energy improvements.
Explaining Bam Energy鈥檚 business model, Cunningham said: 鈥淪ome of the first items to get struck off the list on a project are renewables.
鈥淔or example, the client might target BREEAM excellent but doesn鈥檛 have the money and will have to go for BREEAM very good. What Bam Energy does is take away the cost [of renewables].
Even with the cuts to [green initiatives], the schemes can still be economic
Reid Cunningham, Bam Energy
鈥淚f a client wants to put solar panels on the roof but can鈥檛 afford it, Bam Energy will install the panels free of charge and then the client will buy the electricity we generate afterwards.
鈥淭hey are effectively paying for it from their revenue budget rather than their capital budget.鈥
Cunningham insisted that despite recent changes to government policy in renewables and energy efficiency - which he said is 鈥渃hanging so much it鈥檚 laughable鈥 - the new business can still be profitable.
He said: 鈥淓ven with the government cutting the feed-in tariff and the renewable heat incentive, the schemes can still be economic. For the medium-sized schemes they can be economical.鈥
Bam Energy will cover the cost of installing renewable energy for clients on its current projects, but Cunningham said he is in talks with mainstream banks and other third parties to help fund future schemes.
Cunningham said Bam Energy will only work on Bam projects 鈥渇or the time being鈥.
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