Challenge:
As the eighth-largest school district in the United States, with 212,000 students and more than 27 million square feet of buildings, the Hillsborough County Public School District in Florida was looking to decarbonize its energy system while saving money. Crucially, the District didn’t want to take on more debt while doing it. The project included a unique set of requirements that necessitated a custom contract that had never been financed before.
Solution:
Generate created a new structure that met all the crucial requirements. Generate was also able to eliminate the traditional 27% markup on the work of local subcontractors by being the investor and securing high-quality contraction management by Skanska, one of the largest construction companies in the world. The result was a partnership that allowed the District to avoid sacrifices and risks—just by allowing Generate to displace the local utility for more efficient, smarter, and better infrastructure. As of the end of 2019, Generate had done $60 million worth of work (mostly LED lighting), with future work of $100 million intended for energy management, high-efficiency heating and cooling, solar projects, and more—with the ultimate goal of getting to net-zero energy.
Result:
Generate provided the District with equipment and services at cost plus construction management expenses—roughly 25% cheaper than a traditional energy service company charges. Generate also structured the financing so it is not viewed negatively by credit agencies, protecting the District’s credit rating. And Generate provided more transparency in cost, allowing the District co-development rights—a unique arrangement that treats the District as a true partner.