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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 Program (FEMP).

Whole Building Systems

Materials

  • Kitchen Exhaust Hoods

    Kitchen exhaust hoods are a large energy consumer in cafeteria spaces. Significant amounts of energy can be conserved by utilizing transfer air – co...
  • Occupancy-Control Device

    Occupancy control can save a great deal of energy as it energizes outlets only when users are present and de-energizes them when the space is vacan...
  • Oven

    Convection ovens are common in food service. Look for equipment that carries the Energy Star label for energy efficiency.