What is Energy Performance Contracting?
Here's how it works:
You enter into an agreement with a private
energy service company (ESCO). The ESCO will identify and evaluate energy-saving
opportunities and then recommend a package of improvements to be paid
for through savings. The ESCO will guarantee that savings meet or exceed
annual payments to cover all project costsusually over a contract
term of seven to 10 years. If savings don't materialize, the ESCO
pays the difference, not you. To ensure savings, the ESCO offers staff
training and long-term maintenance services.
Many types of building improvements can be funded through
your existing budgets new lighting technologies, boilers and chillers,
energy management controls and swimming pool covers, to name a few.
qualified ESCO can help you put the pieces together:
and evaluate energy-saving opportunities;
engineering designs and specifications;
the project from design to installation to monitoring;
your staff and provide ongoing maintenance services; and
that savings will cover all project costs.
The Many Benefits
By updating or replacing equipment that is old and obsolete with newer,
more efficient technologies, you will have higher-quality systems, fewer
breakdowns and reduced maintenance. When building occupants experience
improved lighting, better air quality and more comfortable room temperatures,
they are likely to be happier and more productive.
A Wise Investment
Energy performance contracting allows you to divert funds that would be
spent on energy bills into investments in your buildings. For governments,
this means limited budgets can stretch further, putting taxpayers' money
where it really counts. For all building owners, more modern, efficient
energy systems can increase your property value and improve marketability
of your buildings.
Improvements Without Sacrifice
Energy performance contracting allows you to tackle energy efficiency
projects now even if no funds are available. This means you can still
afford improvements when faced with budget cuts or competing priorities.
And, with energy performance contracting, you can take a comprehensive
approach that will optimize your benefits.
New systems and equipment can lower your energy costs. Many building
owners see energy savings of 15 to 35 percent and also reduce their long-term
maintenance costs. You keep all the savings once the equipment is paid
off, plus any excess savings during the contract term.
Proven Technology and Expertise
Since the late 1970s, performance contracting has become a widely accepted
and reliable way to make energy improvements. Today's ESCOs use industry-standard
practices and proven energy-saving technologies and have excellent track
records for satisfying their customers. ESCOs have a financial incentive
to make sure savings are achieved throughout the contract term.
Performance contracting offers a streamlined approach to making facility
improvements because, with a single contract, you can tackle multiple
energy-efficient projects throughout your facility, rather then doing
one project at a time. Your ESCO can provide a full range of services
and continue working with you once the projects are complete to ensure
that you get optimal long-term energy performance.
Frequently Asked Questions
How do I find those energy savings?
By working in partnership with a professional energy service company (ESCO),
you can tap its expertise to determine what building improvements make
the most sense for improved comfort, easier maintenance and your budget.
An ESCO's recommendations might include replacing lighting equipment,
modifying or replacing boilers and chillers, installing modern energy
management control systems, replacing motors or even installing pool covers
or more efficient kitchen equipment.
Can't I do this myself?
Sure, if you have the time, money and expertise. But an ESCO can work
with you to put together a complete package of services that meets your
needs and saves you time and money. An ESCO can identify and evaluate
energy-saving opportunities, provide engineering services, order and install
equipment, and manage all phases of construction. To complete the package,
the ESCO can guarantee the savings and even arrange financing.
How risky is this for me?
ESCOs typically work under a performance guarantee that shifts the risk
to the ESCO. Your guaranteed energy savings pay for the upgrades, so you
have no up-front costs. If energy savings don't materialize, the ESCO
pays the difference, not you.
What can I do to get started?
It's simple: Contact
the Energy Services Coalition. Act today and get those energy savings
working for you.
for 5 steps to successful energy performance contracting.