Energy Savings Performance Contracting

Energy savings performance contracting (ESPCs) is a contracting and financing method that provides upfront financing for energy efficiency projects that is then repaid over time (typically 15-20 years) by the cost savings resulting from the upgrades.

This budget-neutral approach saves building owners money by cutting energy and water waste and saving those operating funds for other priorities. ESPCs are most commonly leveraged by governments, universities and colleges, schools, and hospitals.

The Maryland Clean Buildings Hub (the Hub), an initiative of the Maryland Energy Administration, aims to empower Maryland’s building owners to make well-informed energy investments in their properties by connecting them to financial, educational, and technical assistance. Sign-up for the Hub newsletter here. Have questions? Contact [email protected].

Maryland ESPCs

DGS EPC Program: The Maryland Department of General Services (DGS) administers an energy performance contracting program for State agencies.

Maryland Clean Energy Center: For all other buildings in the state, MCEC provides procurement and technical assistance services for clean energy and decarbonization projects, including decarbonization planning and energy performance contracting.

ESCO List: DGS maintains a list of ESCOs that can manage ESPCs for State facilities.

Measurement & Verification: Measurement and Verification (M&V) is the practice of ensuring that energy reduction initiatives are producing savings as intended. DGS offers comprehensive M&V services to State agencies to ensure energy and cost savings of ESPC projects.

Resources

ESPC Campaign: The Department of Energy’s (DOE) ESPC Campaign provides technical assistance for building owners interested in pursuing ESPCs.

Performance Contracting National Resource Center: A hub for all of DOE’s best practice resources and solutions for ESPC. Browse resources for federal, state, and local agencies and take the accredited PCNRC Training Certificate Series.

eProjectBuilder: eProject Builder is a secure, web-based data management platform that allows customers and energy service providers (ESCOs/utilities/contractors) to preserve, track and report information for their portfolio of energy projects in perpetuity.

ESPC Financing Decision Tree: This flowchart walks users through questions corresponding to the considerations that go into deciding on the financing options available for state and city government ESPC projects.

Benefits of Using an Owner’s Representative: Learn about the benefits of retaining third-party technical consultants known as owner’s representatives.

ESPC Template Documents: DOE has created several template documents - including a financing solicitation, energy services company solicitation, and project proposal - that can be used when developing an ESPC project.

Suggestions for additional resources can be directed to [email protected].

The Maryland Clean Buildings Hub does not endorse any specific resources and does not provide tax or legal advice.

Consult with appropriate professionals for specific guidance.