TOP 100 MAGAZINE

Andrew Spurvey​

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Andrew Spurvey, a passionate advocate for innovation and excellence in the home improvement and energy efficiency sectors, boasts over 30 years of experience in transforming our perception and use of energy. As the president and founder of Conservation Inc. and SF&I Installations Inc., Andrew's career highlights his dedication to energy efficiency, electrification, renewable energy, and sustainable practices.

Conservation Inc.: Leading the Way in Renewable Energy

Founded in 2015 and based in Toronto, Conservation Inc. is a leading consultancy firm specializing in renewable energy and energy efficiency. The company provides top-tier solutions that balance cost and quality, primarily focusing on commercial solar panel projects, energy storage and management systems, and the carbon credit economy. Serving a diverse clientele—including big-box retailers, energy utilities, government agencies, and local, provincial, and federal authorities globally—the firm is renowned for its expertise in both the commercial and residential sectors. Additionally, Conservation Inc. excels as a delivery service agent contractor, implementing residential utility and government-to-consumer rebate and low-income programs, thus promoting the widespread adoption of renewable energy solutions.

SF&I Installations Inc.: Redefining Home Improvement Services

In 2018, Andrew founded SF&I Installations Inc., also based in Toronto. This national service provider, exclusively partnered with The Home Depot, specializes in insulation, solar panel, and EV charger installation services. Under Andrew's leadership, SF&I Installations has earned significant recognition, including Home Depot's 2023 National Highest Overall Voice of the Customer Award and the 2023 Doing the Right Thing Award.

 

Following his impressive journey and accomplishments, we sat down with Andrew to delve deeper into his insights and experiences. In this exclusive Q&A, Andrew shares his thoughts on the future of energy efficiency, the challenges he has faced, and his advice for aspiring entrepreneurs.

Andrew, you’ve been a leader for decades. Tell us a little bit about your background. Have you always had a passion for renewable energy and energy efficiency?

My enthusiasm for energy began around 1992 when I entered the energy sector. Initially, it wasn't specifically about energy efficiency or renewable energy but more about the commodity side of the business, such as spot market prices and hedging of natural gas and electricity supply.

My passion really took off about ten years ago when I got involved in insulation as a service with The Home Depot. I realized that insulating your attic or adding insulation to your walls are the most cost-effective ways for homeowners to save on energy costs. You can have the best furnace on the market, but in the winter, heat rises. Insulation slows down that heat loss, so your furnace doesn't have to work as hard. Similarly, in the summer, if your home is well insulated, your air conditioner doesn't have to work as hard either. That's where my passion for energy efficiency grew leaps and bounds. There is an extraordinary sense of accomplishment when consumer feedback consistently reflects immediate benefits after an upgrade, regardless of the season. Customers report immediate improvements in comfort and noticeable reductions in energy consumption on their utility bills, resulting in tangible monetary savings.

What inspired you to start Conservation Inc?

The journey to starting Conservation Inc. was quite an adventure. I knew I needed a legal entity for my energy conservation consulting business and wanted to incorporate the name "Conservation Inc." However, the registry office rejected my initial application, providing several reasons for the name's denial.

Shortly after, I suffered a severe knee injury at the hockey rink, which took me off my feet for about a year. With plenty of time on my hands, I revisited the denial letter and noticed it had a wet signature from the agent who wrote it, along with a phone number. I decided to call and express my determination to pursue the name. The agent asked if I had a lot of extra time and upon learning that I did, he generously provided a detailed roadmap of everything I needed to do to obtain the corporate name. It was an extensive list, but I was committed. After six months of navigating through the required steps, it came down to one final box to check: hiring a consulting agency to search microfiche files at a city hall in a specific municipality. I also had to contact the next of kin of a company that once had a similar name. After explaining my intentions, they graciously signed a waiver relinquishing any rights to the name.

Two weeks later, I received a call from the Corporations Registration Office. They had me on speakerphone and were seemingly cheering for me, astonished that I had successfully navigated the process. They congratulated me over the phone, even before the official letter was sent out, announcing that I was the proud new owner of the federally incorporated Conservation Inc. I clearly remember someone saying, “I don’t know what you’re planning to do with this company, but I’m sure the name alone is worth money.” Sure enough, I've received offers to buy the corporate name for respectable amounts.

What makes Conservation Inc. unique?

Conservation Inc. stands out in several ways, particularly in our approach to commercial solar projects. One of our key differentiators is offering in-house financial instruments, independent of traditional lending institutions, to fund projects globally. This enables commercial clients to adopt solar energy without using their own capital, allowing them to effortlessly achieve their ESG (Environmental Social Governance) targets.

Another unique aspect of our business is our expertise in retail energy rebate programs. Governments and utilities often seek expert consultation to establish and market energy rebates through major retailers, aiming to access their extensive customer base. This process can be challenging due to differing objectives, corporate terminologies, and legacy systems. Our team excels at navigating these complexities, ensuring successful program implementation and maximum impact. I believe our contributions to these initiatives have significantly contributed to industry adoption helping generate hundreds of millions of dollars in target achievements for extended stakeholders, benefiting many beyond our immediate influence.

We are also deeply involved in low-income and qualified-income energy retrofit programs. As an energy retrofit fulfillment network, we are often contracted by governments, utilities, and delivery service agents to execute and fulfill their program mandates. This work is vital in making energy efficiency accessible to everyone, regardless of economic status.

Additionally, we pride ourselves on our global reach and local impact. We have successfully associated with projects in Africa, Asia, and North America, and are willing to work anywhere in the world. We make it a priority to hire local talent in every country we operate in, supporting the local community and ensuring that we respect and integrate local knowledge and expertise into our projects.

Electricity demand charges can severely impact a company’s operations and profit margin. How can businesses use solar power and energy storage to avoid these charges, save money, and protect themselves against outages?

Great question. I've completed several hundred projects, with many more in the pipeline, in areas where the cost of power is extremely high and reliant on coal-generated electricity. Introducing solar panels into your buildings is beneficial almost anywhere on the planet. In many cases, solar energy can offset the entirety of your electricity bill. The key is combining solar energy with energy storage (battery storage). In some regions, electricity is available at ultra-low rates during the overnight hours when demand is low. By storing this energy in your battery, you can use it during the day when demand is high, thereby avoiding peak electricity costs. For example, on a really hot day when every air conditioner in the region is running, the local electricity company might not have enough internal generation to meet the demand. This situation forces the region to import power, causing electricity prices to skyrocket—sometimes up to 25 times the regular rate. In manufacturing, this can lead to completely shutting down machines and assembly lines to avoid exorbitant demand charges.

Businesses can use energy storage to avoid these charges. With external storage, you can charge with solar and/or when power is cheap and use an energy management system (EMS) to apply logic in utilization while monitoring market costs. When demand charges are approaching, the system automatically switches to battery draw, saving the company significant amounts of money. Moreover, in regions prone to brownouts or frequent outages due to environmental events, having an external battery is a huge advantage. It keeps the lights on, the pumps working, and your business running smoothly, providing reliability during power interruptions.

By leveraging solar power and energy storage, businesses can not only save money, but also ensure a stable and reliable energy supply, protecting their operations and improving their margins and bottom line.

Companies everywhere are trying to meet their ESG requirements. You’re helping them not only meet these mandates by incorporating solar into their buildings, but you’re also helping them fund these projects and sell their carbon credits. Will you tell us about this?

Publicly traded companies and large organizations often have ESG mandates to reduce greenhouse gas emissions and minimize their carbon footprints. However, managing the expenditure involved can be challenging, and for some, it might take years to save the necessary capital. That's where we come in. We offer an internal financing instrument that isn’t a third-party loan. Our interest rate is always below what companies could get from their own banks, so they don't need to put a capital expenditure on the books. We fund the project ourselves. Essentially, you let the sunshine pay it off. Depending on regional energy prices, the monthly payments are quite often covered from the savings generated by their reduced energy bills. I’ve seen returns in as little as two years and as high as ten. Aside from return terms, we’re achieving a cost of 2-3 cents per kilowatt-hour, with markets prices ranging from 12 to 75 cents. While there are many variables, many companies typically see positive returns in the first year. This approach makes it easy for companies to go green and check that box on their ESG list without having to dip into their own capital. It's significant, but there are still great companies out there who do have the available resources to simply purchase systems outright.

Additionally, in many markets, companies can generate carbon credits by going solar and introducing battery storage. We assist companies not only in generating these credits, but also in selling them on the open market. Trading carbon credits can be complex, and many companies don't know how to navigate this process. We handle all the trading for them, allowing them to receive annual recurring revenue from these credits. In some cases, this can amount to substantial sums of money. Our holistic approach helps companies meet their ESG goals efficiently and cost-effectively, while also providing a new revenue stream through carbon credits on a global scale.

You also work with REITs and commercial real estate companies and investors. How can incorporating solar energy into their properties significantly increase the value of the buildings?

REITs and commercial real estate companies can greatly benefit from incorporating solar energy into their properties because it significantly reduces electricity costs, and those savings translate directly into increased property value.

When we install solar systems, we typically see a reduction in energy costs by 70-80%. For example, if a building saves $100,000 a year in electricity, that savings directly contributes to the property's capex, which is usually multiplied by 10, 15, or even 20 times. So, that $100,000 in annual savings could add $1-2 million to the property’s valuation. This is exactly what REITs can only hope for. We provide the funding for the solar installations without capital intensity. This makes it an extremely attractive proposition for REITs that own plazas, malls, multi-complexes, and multi-tenant commercial assets.