The concept of Energy Performance Contracting is relatively simple; your agency engages with an Energy Services Company (ESCo) who, after performing an energy audit, proposes a scope of energy conservation measures (ECMs) that will save enough money to pay for the debt service created when your agency financed the ECMs. These ESCos offer a contractual guarantee so that you and your agency can be assured that annual savings will meet or exceed the annual debt.
Like many things that seem simple at first initial concept, Energy Performance Contracts (EPCs) are extremely complicated. The most upstanding ESCo’s in the industry have a base business model to shift risk to your agency while increasing profit margins. Worse, there are ESCos in the industry that take full advantage of the relationship built and structure the agreement with little to no risk for them at premium prices.
EPC Solutions offers energy performance contracting consulting services as your representative through the ESCo engagement process. Our goal as your representative through the process is simple – insure you and your team understand the paradigm of risk sharing in all aspects of the agreement and assist you with negotiating the most optimum agreement. We can partner with you at the onset of considering EPC and have even started assisted agency’s that have a Contract on their desk and were unsure of whether to execute.
Some agencies, once they understand the risk associated with these types of agreements, decide that developing and implementing these contracts with internal resources is the most optimum path. EPC Solutions can drive these self-perform projects that tend to include more scope of work at lower costs for your agency.