What is Energy Performance Contracting?

EPC- A performance-based procurement method and financial mechanism for buiding renewal whereby utility bill savings that result from the installation of new building systems (reducing energy use) pay for the cost of the building renewal project. A “Guaranteed Energy Savings” Performance Contract includes language that obligates the contractor, a qualified Energy Services Company (ESCO), to pay the difference if at any time the savings fall short of the guarantee.

Why Energy Performance Contracting?

Energy Security – EPC on a broad scale can make a significant contribution to the reduction of facilities energy demand state-wide and nation-wide.

Economic Efficiency – The installation of more energy efficient systems and controls reduces utility bill costs and provides a funding source for building renewal projects.

Economic Development – EPC allows for more building and renovation activity than would normally be possible through traditional contracting methods.

Environmental Stewardship – Significant reductions in energy use also means reductions in green house gas emissions.

Indoor Environment -EPC allows for indoor air quality improvements may not otherwise have been possible due to funding constraints.

EPC and Sustainability – EPC is a practical tool for increasing economic efficiency, improving environmental stewardship, and improving indoor spaces for building occupants.

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