Turn Future Energy Savings into Today’s Funding
Budget constraints shouldn’t stop you from making smart upgrades that improve performance and reduce energy use. Yet school districts and local governments often face common challenges:
- Limited or unpredictable capital funding.
- Rising energy and utility costs.
- Aging systems and deferred maintenance.
- Pressure to improve sustainability and resilience.
Traditional funding approaches often force leaders to delay improvements or compete against other priorities. Performance Contracts remove funding barriers by turning future energy savings into today’s solution.
Energy Savings Performance Contracting, Explained
A Performance Contract, or Guaranteed Energy Savings Contract (GESC), is a proven delivery method that allows public entities to implement energy and facility improvements without upfront capital investment. Under a Performance Contract with Performance Services:
- We design and implement energy conservation measures.
- The improvements reduce energy and operational costs.
- We guarantee the savings generated by the project.
- Those guaranteed savings are used to pay for the improvements over time.
If the savings don’t materialize as guaranteed, we are contractually responsible for the difference. This model shifts financial risk away from the owner and provides certainty from day one.
Common Energy Conservation Measures
Guaranteed Energy Savings Contracts can include a wide range of Energy Conservation Measures (ECMs) tailored to your facilities, goals, and budget. These are just a few examples:
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Building Systems & Infrastructure
- HVAC system upgrades and replacements.
- Building automation and controls.
- LED lighting upgrades and controls.
- Electrical system improvements.
- Plumbing and water conservation measures.
- Advanced Metering Infrastructure (AMI and Smart Water Meters).
- Supervisory Control and Data Acquisition Systems (SCADA) for Wastewater Treatment Plants.
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Energy Efficiency & Optimization
- Energy management and monitoring systems.
- Commissioning and retro-commissioning.
- Building envelope improvements.
- Demand reduction strategies.
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Renewable Energy & Sustainability Solutions
- Solar photovoltaic (PV) systems.
- On-site renewable generation.
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Facility Improvements Enabled by Savings
- Deferred maintenance addressed through savings.
- Infrastructure modernization.
- Optimal environments and comfort improvements.
Measurement, Verification, and Accountability
Guarantees require proof. Performance Services verifies project savings using industry-recognized Measurement and Verification (M&V) protocols.
We track performance and provide transparent reporting so owners can see exactly how systems are performing.
Ongoing monitoring with accountability ensures:
- Savings are real and measurable.
- Systems operate as intended.
- Financial commitments are protected.
How to Get Started
Step 1
RFQ/P or Cooperative Purchasing
Public entities follow an RFQ process using ESPC legislation. Cooperative purchasing (such as TIPS or JOC) may also be an option for your state. An investment-grade audit follows selection to detail the project, including energy conservation measures, project costs, and guaranteed savings.
Step 2
Project
Implementation
After the designs are finalized and the guarantee determined, our project manager will lead construction to complete your project. It will be completed on budget and schedule, with no change orders within the agreed upon scope of work.
Step 3
Measurement and Verification
Our dedicated Performance Assurance Team is introduced at project turnover. Monthly, we compare your utility bills against our guarantee to ensure your savings are being realized. Monitoring is ongoing and lasts the life of the contract.
Why Choose Energy Savings Contracts
Public-sector leaders choose this model because it provides:
- No upfront capital investment.
- Guaranteed financial performance.
- Reduced operational and energy costs.
- Modernized, more reliable facilities.
- Support for sustainability and renewable energy goals.
- One accountable partner from start to finish.
- It’s a practical way to invest in facilities while protecting public funds.
