Energy Saving Performance Contracting

Energy Saving Performance Contracting (ESPC) is a partnership where an energy service company (ESCO) helps organizations reduce their energy use and costs. The ESCO designs, installs, and maintains energy-efficient equipment or systems. The cost savings from lowered energy bills are used to pay back the investment over time. If the projected savings are not met, the ESCO often guarantees the savings or compensates for the shortfall. This approach allows organizations to improve energy efficiency without upfront capital, leveraging guaranteed savings to finance upgrades while reducing environmental impact.