Energy Savings Performance Contracting

Energy Savings Performance Contracting (ESPC) is a type of energy efficiency agreement that allows businesses to make energy efficiency improvements without having to pay the upfront costs. Instead, the contractor finances the project and is paid back through the energy savings achieved over the life of the contract. The contractor guarantees the energy savings, and if the savings are not achieved, the contractor is responsible for making up the difference. This type of contract is attractive to businesses because it eliminates the risk of investing in energy efficiency improvements, and allows them to focus on their core business. ESPC also provides a way for businesses to take advantage of energy efficiency incentives and rebates that may be available in their area. The contractor typically takes care of all the paperwork and ensures that the project meets all the necessary requirements. By taking advantage of energy savings performance contracting, businesses can reduce their energy costs and improve their bottom line.