Metrus Energy, an energy efficiency retrofits developer and financer, signed a $2m Efficiency Services Agreement (ESA) with BAE Systems, Siemens Industry and Bank of America to implement energy efficiency measures.

The project, scheduled to be completed in mid-2011, requires installation of energy efficiency retrofits in BAE Systems' Greenlawn, New York facility, the repayment of which will be based on realizations from energy savings.

The project aims to reduce consumption of electric and natural gas, including heating and cooling system upgrades, high-efficiency pumps, motors and controls resulting in an annual saving of around $300,000 in energy costs.

Metrus partnered with Siemens' Building Technologies Division for design, installation and maintenance with Bank of America financing the project as part of its 10-year, $20bn business initiative to address climate change.

Metrus has completed its $1m retrofit project with BAE Systems at their Merrimack, New Hampshire facility and has enabled payment through an output-based cost per avoided energy units service charge set at-or-below current utility rates.

BAE Systems Greenlawn facility manager Steve Hannwacker said that since implementing utility cost take out initiatives back in 2005, the Greenlawn campus has reduced total energy costs by approximately 40%.