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).

Fact Sheet: Guaranteed Energy Performance Contracting

Resources

Hawaii Energy Performance Contracting (EPC) Statute

Guide to Energy Performance Contracting (2016)

Pre-Qualified Energy Service Companies (ESCO)

Pros and Cons of Shared Savings vs. Guaranteed Savings

Hawaii ESPC FAQs

ESPC Life of Contract Plan

Recorded Webinars

Department of Transportation-Airports Division, Measurement and Verification, Part 1

Department of Transportation-Airports Division, Measurement and Verification, Part 2

Board of Water Supply Energy Performance Contracting Measurement & Verification, Part 1

Board of Water Supply Energy Performance Contracting Measurement & Verification, Part 2

 

For more information on Hawaii’s energy sector and progress in the areas of energy efficiency, renewable energy, and clean transportation, download the 2019 Hawaii Energy Facts & Figures (PDF).