How do you leverage financing and incentives for energy performance contracting?

1 Identify your goals and opportunities

Before you engage an ESCO, you need to have a clear idea of what you want to achieve with EPC and what kind of projects are feasible for your facility. You can conduct a preliminary energy audit, benchmark your energy use, and identify potential areas for improvement. You can also research the market for ESCOs and their track record, expertise, and references. You should also consider your financial situation, risk appetite, and contract preferences.

2 Explore financing options and incentives

There are different ways to finance EPC projects, depending on your needs and preferences. You can use your own funds, borrow from a bank or other lender, or partner with an ESCO that provides financing. You can also look for grants, rebates, tax credits, or other incentives from federal, state, or local governments, utilities, or other organizations that support energy efficiency and renewable energy. You should compare the costs and benefits of different financing options and incentives and choose the one that best suits your project.

3 Negotiate the contract terms and scope

Once you select an ESCO and a financing option, you need to negotiate the contract terms and scope of the project. The contract should specify the roles and responsibilities of each party, the project timeline and milestones, the performance guarantees and measurement methods, the payment mechanisms and schedules, the ownership and maintenance of the equipment, and the dispute resolution procedures. The contract should also define the scope of the project, including the baseline energy use, the target energy savings, the types and costs of the measures, and the expected outcomes and benefits.

4 Implement and monitor the project

After you sign the contract, you need to work closely with the ESCO to implement and monitor the project. You should ensure that the project is completed on time, on budget, and according to the specifications. You should also verify that the project meets the performance guarantees and delivers the expected energy savings and benefits. You should communicate regularly with the ESCO and report any issues or concerns. You should also document the project results and impacts and share them with your stakeholders.

5 Evaluate and improve the project

Finally, you need to evaluate and improve the project over time. You should review the project performance and satisfaction periodically and compare them with the contract goals and expectations. You should also identify any opportunities for further improvement or optimization and discuss them with the ESCO. You should also seek feedback from your staff, customers, and partners and incorporate their suggestions and best practices. You should also celebrate your achievements and recognize your contributions to energy efficiency and renewable energy.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?