ESPC is a performance-based, budget-neutral approach to make facility improvements that reduce energy and water use and increase operational efficiency. By partnering with an ESCO, a facility owner can use ESPC to pay for today's facility upgrades with tomorrow's energy savings—without tapping into capital budgets.
The Performance Contracting National Resource Center (PCNRC) is a hub for all of the U.S. Department of Energy's (DOE) best practice resources and solutions for energy savings performance contracts (ESPCs). ESPCs are a key mechanism for facility owners to implement projects that provide energy and water cost savings without requiring upfront capital funding to pay for the project.
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ESPCs have a well-established track record of delivering energy and water cost savings to buildings owners. A Lawrence Berkeley National Laboratory study estimated that tens of billions of dollars of market potential exists for the public and institutional sectors—a market that accounted for 84% of energy service company (ESCO) revenue in 2011. This 84% market share is comprised of the federal government (20%) and the municipal, university, school, and hospital (MUSH) market (64%) which includes state and local governments, universities and colleges, K-12 schools, and healthcare facilities.
DOE has targeted efforts to support the federal government and MUSH market with ESPCs through two program offices: Federal Energy Management Program (FEMP) and Weatherization and Intergovernmental Programs Office (WIP), respectively. FEMP and WIP established the PCNRC in order to expand the use of ESPC nationwide. This collaborative effort is focused on DOE working with key stakeholders to provide technical and financial expertise, conduct training and workforce development, and grow the extensive library of resources that DOE offers—including guides, tools, and templates. DOE is actively working on developing resources for the PCNRC and will update this website as resources become available.
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