Today’s economic landscape challenges both public and private entities to do more with less. Customers often have to make tough choices between investment in core/critical activities and facility modernization.
Performance contracting, also known as Energy Savings Performance Contract (ESPC) or a Guaranteed Energy Savings Contract, is a valuable tool for achieving infrastructure modernization, budget reduction, efficiency, and sustainability goals without the need for upfront capital expenditure. Performance contracts are budget-neutral. Project costs are paid for by the guaranteed savings realized from efficiency upgrades.
Many states and the federal government have enabling legislation that allows them to enter into such contracts with a qualified energy service company (ESCO), such as NORESCO. Here's how it works. The ESCO:
- Identifies cost savings, infrastructure modernization, sustainability and revenue enhancement opportunities.
- Implements a bundle of efficiency and technology improvements to be funded by project savings.
- Guarantees the savings - if they don't materialize, we pay the difference.
For over 25 years, NORESCO has partnered with our customers to deliver financial, operational and environmental benefits through:
From simple retrofits and upgrades to system modifications and replacements, we deliver projects customized to the unique characteristics of each facility. NORESCO’s approach incorporates both demand and supply-side strategies, without product or technology bias. We integrate proven and leading-edge technologies with sustainable design practices to optimize overall energy and environmental performance.
NORESCO’s experience spans the full spectrum of building types and technologies. Through all project phases — planning and development, implementation and long-term performance period — we are the single point of responsibility for our customers. This ensures project objectives are met and savings achieved, minimizing risk and maximizing customer satisfaction.
NORESCO’s flexible financing options are designed to yield high return on investment with nominal risk. Our vast experience arranging various forms of financing tailored to the specific needs of the project include tax-exempt bonds, non-recourse private placement project debt, and a combination of customer financing and NORESCO equity investment. Our financial strength and stability allow us to secure preferred financing rates and security instruments to implement projects of virtually any size.
NORESCO’s experience also extends to Property Assessed Clean Energy (PACE) programs for commercial, industrial and multi-family residential properties. Similar to performance contracting, PACE provides low-cost financing for energy efficiency upgrades that building owners can pay for over time through an assessment on their property tax bill.
NORESCO creates high-performance environments that are sustainable. Our solutions are designed for long-term reliability and performance and offer maximum ﬂexibility to adapt to future needs.
Post-implementation, NORESCO can serve as an extension of your staff, providing a full range of operation, maintenance, 24/7 service and repair options. For customers who prefer to operate and maintain the installed improvements themselves, we provide warranties, training and support services. Our energy procurement services maximize energy savings and ensure long-term sustainability.
NORESCO stands by all of its work and commitments and will provide ﬁnancial and contractual guarantees to ensure savings and performance results are sustainable. Our full suite of metering and veriﬁcation services range from one-time measurements as part of the commissioning process to intensive hourly measurements over the lifecycle of the investment.