Performance Contracting
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Energy Savings Performance Contracting (ESPC) is a wide-ranging building retrofit option developed in the private sector.
ESPCs are typically performed by an Energy Services Company (ESCO) and include a comprehensive building energy audit, a financial analysis of upgrade options, arrangement of project financing, installation of building upgrades, and post- installation performance monitoring and equipment maintenance.
ESPCs are typically designed to be cash-flow positive or neutral, where the amount of monthly energy savings are at least equal to the amount of the monthly payment needed to finance the improvements. Most ESCOs guarantee the projected energy savings, and will reimburse the customer if the savings are not realized.