Energy Savings Performance Contracts (ESPCs)

Energy Savings Performance Contracts (ESPCs) are financing mechanisms that enable municipal and federal government agencies, as well as private enterprises, to finance projects related to the procurement, installation, and operation of energy efficient equipment and systems, with no up-front costs. The energy and water conservation projects result in a guaranteed agreed-upon cost savings for the host obligor. Through ESPCs, host obligors can access private-sector expertise in energy efficiency, water conservation and renewable energy.