Energy Performance Contract
Under an Energy Performance Contract (EPC), an energy service company (ESCO) coordinates installation and maintenance of efficiency equipment in a customer’s facilities and is paid from the associated energy savings. The ESCO typically provides a savings guarantee. The improvements are usually owned by the customer and may be installed with little or no upfront cost if the EPC is financed. EPCs are suited for larger, more complex projects with high upfront costs. EPCs are also called energy savings performance contracts (ESPCs).