Technology Assessment Division

Benefits of Performance Contracting

1. Better Buildings

Updating or replacing equipment that is old or obsolete with newer, more efficient technologies, results in higher quality systems, fewer breakdowns, and reduced maintenance costs. When building occupants experience improved lighting, better air quality, and more comfortable room temperatures, they are likely to be happier and more productive.

2. A Wise Investment

Energy performance contracting lets you invest money in building improvements that would otherwise be spent on energy bills. For governments, this means making better use of limited budgets and putting taxpayers’ money where it really counts.

3. Improvements Without Sacrifice

Performance contracting lets you tackle energy-efficient projects even if no funds are available. This means you can still afford improvements when faced with budget cuts or competing priorities. Performance contracting is a budget neutral vehicle that allows you to take a comprehensive approach toward optimizing your benefits.

4. Cost Savings

Newer systems and equipment can reduce energy costs. In addition to long-term maintenance costs, most buildings realize energy savings of 15 to 35 percent. Once the equipment is paid off, you keep all the savings plus any excess of the guarantee during the contract term.

5. Proven Technology and Expertise

Since the late 1970’s, performance contracting has become a widely accepted and reliable way to make energy improvements. Today’s Energy Service Company’s, often called ESCOs, follow industry standards, use proven energy saving technologies, and have excellent track records for satisfied customers. An ESCO is your partner in making sure savings are achieved throughout the contract term.

6. One-Stop Shopping

Performance Contracting offers a streamlined approach to facility improvements. With a single contract you can tackle multiple energy-efficient projects, rather than doing one project at a time. ESCOs provide a full range of services and work hard to ensure optimal long-term energy performance.