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An Energy Performance Contract (EPC) is an excellent
vehicle that puts you in the driver's seat to
successfully negotiate and handle rising energy
costs. An EPC gets you comprehensive energy
efficiency improvements with minimal or no up
front costs. Cost savings from reduced utility
consumption help replace aging equipment, provide
access to financing needed for capital improvements
and improve facility energy efficiency.
A typical EPC includes the
following stages:
To explain more simply: the energy savings company
makes its customers more energy efficient. These
energy savings directly lead to cash savings, which
is divided between the customer and the performance
contractor. This approach, called “paid from
savings,” allows you to turn wasted energy into cash
flow, and is the standard approach of all energy
saving companies.
- Preserve limited budget dollars
- Pay for needed capital energy improvements
from savings
- Reduce repair and maintenance costs caused
by inadequate, aging, or obsolete equipment
- Provide better overall building management
and control
- Provide needed technical training and
knowledge for building operating personnel
- Decrease indoor air quality (IAQ) problems
- Increase employee productivity resulting
from working in a more comfortable environment
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