Energy Savings Performance Contracting (ESPC)

Energy Savings Performance Contracting (ESPC)

GreenEfficient® as Your Facilities’ No-Cost Energy Partner

Energy Savings Performance Contracts (ESPCs) are a way for facilities owned by Commercial or Federal agencies to reduce their energy consumption without high upfront costs. An ESPC is a partnership between a company/agency and GreenEfficient® which acts as the Energy Service Company (ESCO).  GreenEfficient® would perform an audit on the facility and determine what improvements could be made that would save the most energy. The facility owner does not pay for the upfront cost of the energy savings retrofits, but instead pays GreenEfficient®, the ESCO, a percentage of the estimated energy savings over an agreed upon time period which can be from 5 and up to 25 years.

These contracts originally began in Federal facilities in 1992 with the passing of the Energy Policy Act of 1992 and it allows the Federal agencies to use private sector financing on energy conservation projects. 

Types of ESPC Projects

  • Building Envelope and Air Barrier Systems
  • High Efficient Lighting and Daylight Systems
  • Renewable Energy Generation Systems
  • Water Conservation and Harvest Systems
  • High Efficient HVAC Systems
  • Building Automation and Integrated Management Systems

Based on the Department of Energy oversight, ESPCs are indefinite delivery/indefinite quantity contracts which make them as cost-effective as possible for agencies. ESCOs are rewarded umbrella contracts based on their ability to meet the goals of the energy savings.

Benefits of ESPCs

  • Access to private-sector expertise in energy efficiency projects
  • Infrastructure improvements which help create healthier & safer working environments
  • No steep upfront costs on new equipment
  • Energy savings lower energy bills and can reduce peak demand
  • Buildings Carbon Footprint can be reduced

ESPC projects often encompass several energy savings solutions which often lead to long term energy savings with no disruption to the facilities production and comfort.