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Energy Savings Performance Contracts (ESPCs)


Energy savings performance contracts (ESPCs) allow federal agencies to implement cost-saving facility energy improvements with no up-front capital costs. Source: U.S. DOE Federal Energy Management Program (FEMP), Energy Savings Performance Contracts for Federal Agenciesopens in new window


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Energy Performance

Assessing a building’s energy performance involves comparing its energy use to that of peers or a standard. The ENERGY STAR program provides recognized benchmarks for assessing a building’s energy performance.

Energy Savings Performance Contract (ESPC)

Energy savings performance contracts (ESPCs) allow Federal agencies to complete energy-savings projects without up-front capital costs and special Congressional appropriations. An ESPC is a partnership between a Federal agency and an energy service company (ESCO). The ESCO conducts a comprehensive energy audit of Federal facilities and identifies improvements to save energy. In consultation with the Federal agency, the ESCO designs and constructs a project that meets the agency's needs and arranges the necessary funding. The ESCO guarantees that the improvements will generate energy cost savings to pay for the project over the term of the contract (up to 25 years). After the contract ends, all additional cost savings accrue to the agency.

Federal agencies can access expert assistance, guidance, and training to help them implement ESPC projects through the Federal Energy Management Programopens in new window (FEMP).

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Did You Know?

Every ton (about 40 cartons) of 30% postconsumer content copier paper saves the equivalent of 7.2 trees

Source: ConservaTreenon government site opens in new window


Case Study

Occupant Comfort

Operable Windows

Comfortable workers are more likely to be productive and engaged with their work than those who struggle to work in spaces that create barriers and stresses. With an ever increasing number of environmental issues to be mindful of when designing spaces, GSA is developing practices that support both sustainability and worker comfort.

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