Chevron's energy solutions help schools

UC Davis aims to make West Village net-zero energy.

When the University of California, Davis sought to make its new West Village campus addition a net-zero energy user, the school did not choose a local design firm; it chose Chevron Energy Solutions.

A San Francisco-based subsidiary of the global oil and energy giant Chevron (NYSE: CVX), Chevron Energy Solutions was established in 2000, and has quickly ascended with hundreds of projects across the country. It is now the largest installer of solar panels, fuel cells and biomass projects nationwide. And the company’s projects have reportedly saved customers an average of 30 percent in energy costs, totaling more than $1 billion.

At UC Davis, the $280 million West Village is slated to occupy 200 acres with a mix of affordable homes for about 475 faculty and staff, along with apartments and housing for about 3,000 students. Besides passive solar and other energy-efficient design techniques, developers plan to employ onsite solar panels and a biodigester developed at UC Davis.

Some industry members have privately grumbled about a petroleum industry giant so quickly dominating the market. But with increasingly tight budgets amidst recessionary times, the comprehensive approach and Chevron Energy Solutions’ overall size seem to indicate a maturing market.

“What we valued that Chevron Energy Solutions provided is a comprehensive input on an evolving area, both in energy conservation and renewable energy generation,” says Nolan Zales of Carmel Partners, the co-developer of UC Davis’ West Village. “Within their shop they have skills that address a whole array of issues: technical, financial, regulatory. … They’re the most comprehensive.”

Chevron Energy Solutions offers both energy efficiency consulting and alternative energy technology, dwarfing its competitors in a segment of the market weighted with small businesses. And it also guarantees its clients’ project energy savings. At little or no upfront cost, the company provides what is called a "performance contract", which means it gets paid out of its customers' long-term savings. It claims that in the 30 states it has worked in, customers average about 30 percent energy cost savings. Although 98 percent of CES’ projections have been on target, if they’re not, the company cuts a check for the difference.