WHAT IS ENERGY PERFORMANCE CONTRACTING?
Energy performance contracting is a practical and effective way to finance
and install proven energy-efficient technologies, improve your facility's energy
performance - and save money and energy.
Through performance contracting, you can implement energy efficiency projects
that pay for themselves through the energy savings, and in many cases require no
up-front financial investment.
The money that you will save through reduced energy bills is leveraged to
offset the cost of financing, installing, operating, and maintaining the energy
efficiency measures. Your energy efficiency plan is typically designed and
installed by an energy service company, or ESCO. You pay the ESCO through
reduced energy bills, typically sharing the energy cost savings over a
predetermined length of time, after which all of the energy savings revert to
you, the facility owner.
Here's how you can benefit from a performance contract:
- Reduced risk - the ESCO takes on the risk of not achieving the prescribed
- Turn-key services - the ESCO provides all required services
- Your business or institution needs less internal expertise
- Project financing can be ‘off balance sheet' and not affect debt load
- State-of-the-art products and services are used
- Additional efficiency improvements can be paid for out of the energy
Your ESCO will recommend cost-effective improvements, work with you to
implement the recommendations you choose, and guarantee that the resulting
savings will cover all project costs.