Energy Services
Energy Performance Contracting
Funding efficiency work from the savings it produces, with the performance risk carried by us.
Most facilities have identified efficiency projects they have not executed, and the obstacle is almost never whether the project makes sense. It is that capital is committed elsewhere. Performance contracting addresses that directly: the project is funded from the savings it generates, and the contractor carries the risk that the savings appear.
How the structure works
We audit the facility and identify measures. We design and install them. Savings are measured against an agreed baseline under an M&V plan set out in advance. Payment is structured against those verified savings, and where savings fall short of the guaranteed level, the shortfall is our exposure rather than yours.
The effect is to move the performance risk to the party that controls the technical decisions — which is the correct place for it, and the reason the structure exists.
What we bundle into a program
Combining measures matters, because strong measures carry marginal ones into viability.
- Interior and exterior LED conversion
- Networked lighting controls and commissioning
- Occupancy sensing, daylight harvesting and task tuning
- Utility rebate and incentive capture across all applicable programs
- Ongoing maintenance and lamp recycling
- Measurement and verification reporting
Where it fits, and where it does not
Performance contracting works best where energy spend is substantial, the facility will be held long enough to realise the term, and there is an internal sponsor who wants the outcome. Multi-site portfolios are particularly well suited, because the fixed cost of structuring the program is spread across many locations.
It works poorly on short lease terms, on buildings scheduled for major renovation or sale, and where energy spend is too small to support the transaction cost. We will tell you when a project is better done as a straightforward capital purchase — the structure is not free, and it is not always worth what it costs.
Why the bundle beats a single measure
Lighting typically produces the fastest payback of any efficiency measure, which makes it the anchor. Bundling slower-payback measures with it produces a blended return that supports a longer term and a broader scope than any of those measures could justify alone.
This is the core financial logic of how ESCOs structure work, and it is available to you whether or not you use a formal performance contract.
Common questions
What does it cost us upfront?
Structured properly, little to nothing — the project is funded from the savings stream. Financing terms and the length of the guarantee determine the specifics, and we set those out in writing before you commit.
What if the savings do not materialise?
Under a guaranteed savings structure, the shortfall is our liability. That guarantee is the substance of the arrangement, and it is why the M&V plan and baseline must be agreed in detail before work starts.
Do you work with our existing financing?
Yes. Some clients prefer their own capital or an existing facility and simply want turnkey delivery with verified results. We are happy to work either way.
Can this cover multiple locations?
Yes, and portfolios are where the structure works best. The cost of setting up the program is spread across sites, and a single standard applied across all of them produces consistent results.
Ready to talk about your project?
Tell us what you need and we will give you a straight answer on scope, schedule and cost. No obligation, and no pressure if it turns out we are not the right fit.