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Energy Savings Performance Contracts

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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, constructs, and arranges financing for the project, and the facility owner repays the ESCO through energy cost savings over the term of the contract. After the end of the contract, cost savings accrue to the facility owner.

ECMD 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. ECMD has also approved two microgrid projects that will provide power to a community college and a State Park. ECMD will proudly continue to provide technical assistance to any State entity that inquiries about reducing their energy consumption.

State Price Agreements:

Johnson Controls

Yearout Energy Services


McKinstry Essention


Conti Energy Control

CEG Solutions

The Brewer-Garret Co.

Trane U.S. Inc.