When Federal agencies realise energy saving projects in the absence of special Congressional appropriations and up front capital costs, it is due to Energy Savings Performance Contracts or ESPCs. Energy Performance contracting also refers to contracts with designers, developers or architects through which payments to them as fees are slightly higher than regular rates but part of their charges are paid over due course from the savings their ideas allow in terms of performance or efficiency. An ESPC is a partnership between an energy service company and a Federal agency with contract terms of up to 25 years. The energy service company guarantees that solutions provided by them will result in a saving on energy costs that will gradually pay for the project.
Energy Saving Performance Contracts
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