Energy Service Companies Savings Performance Contracts ESA Payments and ESCO Guarantees
Energy Services Agreements – ESAs – are pay-for-performance, off-balance sheet financing solutions that allows customers to implement energy efficiency projects with zero upfront capital expenditure. As in the case of power purchase agreements – PPAs – equipment is installed, owned and operated by the vendor who sells the saved power to the customer.
ESAs are the Energy Efficiency Equivalent of a Power Purchase Agreement
Energy Service Companies – ESCos – provide designs and implementation solutions for energy savings projects, retrofitting, energy conservation, outsourcing, power generation and supply.
Energy Savings Performance Contracts – ESPCs – accelerate investment in cost effective energy conservation measures without up-front capital costs. ESPCs are partnerships between a property owner/operator and an ESCo which conducts a comprehensive energy audit to identify improvements to save energy, designs and constructs the project as well as arranges the necessary financing.
An ESCO Guarantees the Improvements that Generate Energy Cost Savings
Energy Savings result from lighting upgrades, building automation system and controls. A Flexible Contractual Tool for retailers looking to stabilize utility costs as well as achieve longer term benefits by buying out the contract and take ownership of installed equipment.
ESA Payments are operating expenses designed to be off-balance sheet financing solutions with regular payments similar-to a utility bill.
Outputs Quality and Achievements of Specific Measurable Performance Standards and Requirements
Benefits resulting from the application of ESAs include energy efficiency, water conservation, emissions reduction and streamlined contract funding for energy management projects, through access to private-sector expertise, built-in incentives to provide high-quality equipment, and project commissioning infrastructure improvements. Project management ensures building efficiency and new equipment without upfront capital costs as well as energy and related operation and maintenance cost saving guarantees.