Energy Performance Contracts

Energy Performance Contracts – Financing Energy Efficiency Upgrades

At RMS Pros, we understand that improving energy efficiency is essential for reducing operational costs and enhancing sustainability, but the upfront costs of equipment upgrades can be challenging. That’s where Energy Performance Contracts (EPCs) come in. EPCs allow businesses to make energy-saving improvements without large initial investments, as the projects are financed through the savings generated by the energy upgrades themselves.

What Are Energy Performance Contracts?

Energy Performance Contracts are a budget-neutral way to finance energy-saving projects. With an EPC, an energy service company (ESCO) handles the design, installation, and maintenance of energy conservation measures (ECMs) for your business. The cost of these upgrades is repaid over time from the savings generated by reduced energy consumption, meaning the project essentially pays for itself. Learn more here.

Key Benefits of Energy Performance Contracts

• No Upfront Costs: EPCs allow businesses to implement energy-efficient solutions without a large capital investment.
• Guaranteed Energy Savings: The savings from your upgrades are guaranteed by the ESCO, reducing your risk. If savings fall short of projections, the ESCO covers the difference.
• Comprehensive Upgrades: EPCs allow businesses to bundle multiple energy efficiency improvements, from HVAC systems to lighting upgrades, under one contract.

How Energy Performance Contracts Work

Energy Performance Contracts are structured to ensure that the savings cover the cost of the improvements. Here’s how they work:

• Energy Audit: An ESCO conducts a thorough energy audit to identify inefficiencies and recommend improvements.
• Custom Energy Plan: Based on the audit, the ESCO develops a tailored plan with projected energy savings.
• Project Implementation: The ESCO installs the systems, manages the project, and ensures that everything operates at peak efficiency.
• Guaranteed Savings: The savings generated by the improvements are used to pay for the upgrades. The ESCO guarantees a level of savings over the contract term.

Industries That Benefit from EPCs

EPCs are ideal for a wide range of industries that want to lower their energy costs while upgrading outdated systems. Examples include:

• Commercial Buildings: EPCs can reduce operating costs in office spaces and retail locations.
• Manufacturing Facilities: Industrial sites can upgrade HVAC, lighting, and power systems for improved efficiency.
• Municipalities and Schools: Public institutions use EPCs to improve energy performance without budget strains. Learn more about public sector EPCs in Michigan.

Financing with EPCs

With EPCs, the term of the contract typically ranges from 5 to 20 years, depending on the complexity of the project. Utility rebates and state incentives can further reduce the project cost. Explore Michigan Saves financing options to support your energy upgrades.

Partner with RMS Pros for Energy Savings

By partnering with RMS Pros, you can take advantage of Energy Performance Contracts to implement comprehensive energy solutions that save you money and improve your facility's performance. We work closely with ESCOs and utility providers to ensure that your project is tailored to your needs, guaranteeing savings and efficiency.

Contact RMS Pros today to learn more about how an Energy Performance Contract can help your business reduce costs and enhance sustainability.