Energy Savings Performance Contracts: A Budget-Neutral Solution
Public owners can use energy savings performance contracting to finance energy-focused infrastructure projects, including solar. This flexible funding alternative helps schools, universities, cities, towns, counties, and state governments use energy savings and avoid capital costs to address deferred maintenance and pay for improvements. As a result, no up-front capital is required. Projects are financed and repaid with guaranteed energy and efficiency savings.
An Energy Savings Performance Contract is a contractual agreement between a qualified provider and a public entity to reduce the energy and operating costs of a building through the implementation of energy conservation measures. They are unique in that they do not require a large up-front investment. Future energy savings from the improvements can be used to pay for the cost of the project.
Once the project is implemented, the qualified provider monitors utility bills and energy consumption every month to ensure that everything is running correctly and efficiency levels are reached. If the actual energy savings do not match the energy savings that were promised, the provider will pay the difference and make any changes needed. Any additional savings achieved from the project go directly to the building owner.
Below is a graph illustrating the cash flows of a performance contracting project:
Benefits of Working with Performance Services
Project costs are 100% financed and are repaid with guaranteed savings and revenue increases. Financing options are available.
Our promise of guaranteed performance applies to all of our projects, including energy savings throughout the life of the contract. We can provide project performance criteria in other key areas too. These include air quality, humidity, temperature, and noise levels – all factors contributing to or defining the client’s optimized environment.
OPEN BOOK PRICING
At Performance Services, we believe in total transparency for services rendered, including a choice of subcontractors and line-item pricing. Our true open book pricing provides the owner with interactive and fully competitive pricing for all cost categories. This ensures the owner is getting the best value with the reassurance they deserve.
NO CHANGE ORDERS
Performance Services takes responsibility for any oversight within the scope of the proposed project. We have a track record of commitment to no change orders within the agreed scope of work. At Performance Services, our word is our bond, and we want to maintain excellent relationships with our clients.
ENERGY STAR LEVEL PERFORMANCE
At Performance Services, we pride ourselves on the work it takes to deliver high-performing buildings, that’s why we believe in ENERGY STAR, a rigorous performance-based recognition that includes environmental criteria as certified by our professional engineers. Being a leading qualified provider for ENERGY STAR buildings, we bring the support needed to earn this recognition and proof of a high-performing building.
For more information about working with our team, please contact us today.