Energy Savings Performance Contracts

A net-zero building is defined as a building that “produces enough renewable energy to meet its own annual energy consumption requirements, thereby reducing the use of non-renewable energy in the building sector” (DOE).

The first step towards this net-zero goal is to understand and minimize the total energy usage of a facility, whether it is a new building or an existing building. Energy efficient systems can be funded in partnership with an Energy Service Company (ESCO) in the form of a Guaranteed Energy Savings Performance Contract (ESPC).

The ESCO conducts a comprehensive facility energy audit and identifies options for capital improvements to save energy. Taken together, these capital improvements can lower the overall energy consumption of a facility. The ESCO designs and completes the project. After completion, cost savings accrue to the facility owner.

ECAM has approved forty-six Guaranteed Energy Savings Performance Contracts (GESPC) totaling more than $345 million in project investment since 2013. This program has been utilized by local governments (20 projects), the Higher Education Department (12 projects), K-12 schools (6 projects), and other government agencies (8 projects). These projects have resulted in more than $15.2 million in annual savings to State entities while reducing the total utility consumption by an average of 29.4% per project.

These projects also deployed renewable energy generation totaling more than 20 million kWh of electricity. ECAM has also approved two microgrid projects that will provide power to a community college and a State Park. ECAM will proudly continue to provide technical assistance to any State entity that inquiries about reducing their energy consumption.

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