How Performance Contracting Works

Government entities can enter into an agreement with an energy service company (ESCO) that will identify and evaluate savings opportunities and then recommend a package of improvements to be paid for through utility and operational savings.

    Many building improvements can be funded through performance contracting, including new lighting technologies, boilers and chillers, energy management controls, landscape irrigation systems, trash compaction, and more.

      Possible issues performance contracting can address

      • Too many demands on agency time and budget
      • Old, outdated equipment in agency buildings
      • Recurring equipment problems that take up valuable staff time

        With performance contracting, agencies can make facility upgrades with no up-front capital, and pay for them over time through the utility and operational savings that result. Agencies benefit immediately, getting new equipment, energy professional expertise, ongoing maintenance services and the ability to accomplish many projects all at once.