ESCO Model

The ESCO (Energy Service Company) Model involves a company that provides energy solutions to clients, such as improving energy efficiency or installing renewable systems, with the goal of reducing energy costs. Instead of clients paying upfront, they enter into a contract where the ESCO invests in upgrades and is repaid through the energy savings achieved. If the improvements don't generate expected savings, the ESCO absorbs the risk. This model aligns the ESCO's success with cost-effective energy improvements, making it easier for organizations to upgrade facilities without large initial expenses.