What Is Energy Performance Contracting?

A performance contract is an agreement between an energy services company (ESCO) and a facility owner, under which the ESCO engineers and implements facility improvements at no up-front cost to the owner. The ESCO guarantees the owner a minimum level of energy savings from energy efficiency upgrades and retrofits and helps the owner secure financing based on that assurance. Over the contract period—typically eight to 15 years—the savings from reduced utility bills are used to pay for the capital investment in the equipment, the installation and related financing fees. Afterwards, the facility owner retains 100 percent of the savings to use at its discretion. Owners of numerous facility types, including schools, hospitals, and manufacturing and government entities, have used performance contracting as a low-cost, low-risk way to improve facilities.

How Chevron Energy Solutions Can Help
We work on projects that involve a wide array of technologies and applications, including lighting, heating, venting, air conditioning, energy management systems, motors, heat exchangers, windows and roofs, and boilers and chillers. In addition, Chevron Energy Solutions has the technical expertise to offer such cutting-edge solutions as web-based energy information systems, onsite generation, cogeneration and renewable power sources, including fuel cells and photovoltaics.

Key Benefits of a Performance Contract

• Cost Savings
  New, high-efficiency equipment typically provide 15 to 30 percent energy and operational savings each year. These savings generally cover the cost of the improvements, while reducing maintenance, operations and energy costs.
• Emmissions Reduction
  Energy efficiency and renewable power projects reduce greenhouse gas emissions by reducing demand for electricity that would otherwise be produced by local fossil-fuel power plants.
• Improved Indoor Environment
  Building occupants enjoy improved lighting, better air quality and more comfortable temperatures. Studies show that improved occupant comfort increases overall productivity.
• Budget Stretching
  Energy-efficient equipment lowers utility costs. Performance contracting demonstrates fiscal responsibility because savings can be redirected to other facility projects and critical operating needs, such as new computers or new production lines.

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