Performance Contracting

Performance Contracting is a strategic, design-build energy plan that is self-funded by virtue of its own savings. Put another way, the debt service created as a result of the program is retired by the savings generated by the newly applied and/or installed technologies and operating procedures. Because it is sole-sourced, the performance, both financial and operational, is guaranteed by the ESCO in an effort to mitigate many of the risks typically associated with the traditional approach of constructing new projects. The diagram below illustrates the Performance Contracting process and how it works.