Energy Saving Performance Contract

An Energy Saving Performance Contract (ESPC) is a contractual agreement between a customer and an energy services company (ESCO) to provide energy efficiency services and/or renewable energy services. The ESCO is responsible for designing, installing, and financing the energy efficiency and/or renewable energy measures, while the customer agrees to pay for the energy savings that result from the measures. This payment is typically done through a monthly payment plan over a set period of time. The ESPC allows customers to make energy efficiency and/or renewable energy improvements to their facility without having to pay for the full cost of the project upfront. This type of agreement can help customers save money on energy costs, reduce their carbon footprint, and increase the efficiency of their facility. In addition, the ESCO is responsible for ensuring that the energy efficiency and/or renewable energy measures are properly maintained and that the customer receives the energy savings that were promised.