Energy Savings Performance
What is ESPC?
Also known as Guaranteed Energy Savings Contract. Performance contracting, is an important tool to help increase and achieve energy efficiency, budget reduction, sustainability goals, infrastructure modernization with zero upfront cost. These contracts are paid for by savings incurred by efficiency upgrades.
In this type of contracting the contractors do not get paid immediately but through the bills savings incurred in real-time depending on the type of savings plan. This encourages the owners and contractors to focus on strategies that yield the largest returns.
Efficiency projects are selected based on how much savings they can incur.This makes it easier for the business owners to acquire financing and avoid high costs of installing retrofits.
How ESPC works
Public agencies apply to contribute to the program and enter a contract with METCO which is an energy saving company (ESCO). METCO then carries out an energy audit to devise the best energy saving’s strategy. Performance Contracting requires that the project can provide enough savings to pay the capital costs of improvements throughout the contract.
Benefits of ESPC
No Bidding Requirement
No bidding process as the contractors are pre-approved by the state. The selected ESCO will handle the project from auditing to the end of the project.
Zero Upfront Cost
There is zero upfront cost as the project’s finance is pre-decided between the ESCO and the state depending on the energy savings.
With the incentive of saving’s-based income, the energy saving company is motivated to find ways that will maximize energy savings.
Smoother Financial Planning
ESPC enhances the ability to plan the budget accounts.
Why Choose METCO?
METCO is one of the pioneering performance contractor in the nation. METCO’s professionals embody strength in capacity, character and commitment.
METCO focuses on providing the best performance contracting services with a team of highly qualified professionals that can analyze the performance of your systems. Recommended tune-ups and upgrades enable optimum functioning of the setup reducing unnecessary expenditure. METCO uses the principles of performance contracting to ensure effective energy retrofitting. This also removes the pressure of high up-front costs and optimizes your return on investment.