Energy Savings Performance Contract

An Energy Savings Performance Contract (ESPC) is a type of agreement between a customer and an energy services company (ESCO) that enables customers to improve their energy efficiency without upfront capital costs. The ESCO is responsible for designing, installing, and maintaining the energy efficiency measures, and the customer pays for the project through the energy savings that are achieved. This type of contract is beneficial for customers because it allows them to reduce their energy costs without having to invest in costly capital improvements. The ESCO is also able to benefit from the contract because they are able to provide their services to customers without the risk of not being paid. The ESCO is also able to benefit from the performance-based payments, which are based on the energy savings that are achieved. The ESPC is an effective way for customers to reduce their energy costs and improve their energy efficiency, while the ESCO is able to provide their services without the risk of not being paid.