Five Steps to Successful Energy Performance Contracting

STEP 1: Decide if energy performance contracting is a good solution for you
Your first step is to consider how a performance contract would work for you. You will want to look at your facility needs, your current staff capabilities, and your potential to make improvements.

STEP 2: Select an energy service company
The ESCO will be your partner for a long time, so it is important to select one that shares your vision and is able to meet your needs. A request for proposal (RFP) is an excellent way to identify interested ESCOs and compare approaches. The Governor’s Energy Office has made this process even easier by providing a list of pre-approved ESCOs that we believe are best qualified to meet your needs.

STEP 3: Contract with your ESCO to identify energy-savings opportunities
Your ESCO will perform an investment-grade energy audit that identifies energy-saving opportunities and evaluates their potential. This provides you with critical information to later negotiate your performance contract. The ESCO will then prepare a project development agreement proposing a package of projects to include in the performance contract. Click here for a Sample Energy Audit and Project Development Agreement and Negotiating Tips.

STEP 4: Negotiate a long-term contract with your ESCO
An energy performance contract is your road map for implementing and tracking the project over the term of the agreement. It should clearly define roles and responsibilities and explicitly state how savings are determined and how the guarantee will function. Click here for a Sample Contract. The Governor’s Energy Office will work with you to negotiate a worry free contract that meets your energy needs while providing the highest possible level of security and dependability.

STEP 5: Verify savings and enjoy benefits
Follow-up monitoring helps you ensure you are getting full value from your energy performance contract. The success of the monitoring effort depends on the level of detail provided in the energy performance contract.