Energy Savings Performance Contracts (ESPC)

Energy Savings Performance Contracts (ESPC) are agreements between a service provider and an organization, typically in the public sector, to improve energy efficiency. In these contracts, the provider implements energy-saving measures—like upgrading lighting or HVAC systems—without upfront costs to the organization. Instead, the provider is paid back through the energy savings generated over time. This arrangement allows organizations to reduce energy costs and improve their facilities while minimizing financial risk, as the savings are guaranteed by the provider. It's a way to invest in sustainability and save money simultaneously.