Energy Performance Contracting
What is Energy Performance Contracting?
Energy performance contracting is an agreement between a building owner (or facilities manager) and a private energy services company (ESCO) that future operational cost savings (such as for annual: electricity, water, sewer or solid waste charges, as well as equipment maintenance service contracts) can be used to pay for the entire cost of a building’s energy and water efficiency retrofits (also known as energy conservation measures, or ECMs). A building owner contracts with an ESCO to assist in getting 3rd party financing for mutually agreed upon ECMs and (after the third-party financing is secured by the building owner) the ESCO implements the mutually agreed upon ECMs under “design-build” work (which includes design, purchase, installation and construction of the ECMs).
For more information on Hawaii’s energy sector and progress in the areas of energy efficiency, renewable energy, and clean transportation, download the 2020 Hawaii’s Energy Facts & Figures (PDF).