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ESCOs (Energy Service Companies)

Energy service companies (ESCO) develop, design, build, and fund projects that save energy and reduce costs through performance contracting. Performance Contracting is a funding mechanism that uses cost savings from reduced energy consumption to repay the cost of installing energy conservation measures. If financed projects do not provide returns on the investment, the ESCO is responsible to pay the difference, thus guaranteeing the savings will cover all project costs.

By partnering with an ESCO, this type of financing allows building owners to achieve energy savings without upfront capitol expenses. ESCOs will secure financing in the form of a loan, capital lease or bond from a third-party lender.  State agencies interested in working with an ESCO may contact the DTMB-Design and Construction Division to secure services.

Chris Parsons, Project Director Manager
DTMB Design and Construction