Energy-as-a-service agreements and energy savings performance contracts: What’s the difference?

Facility managers looking to finance energy efficiency projects may turn to energy savings performance contracts, offered by traditional energy service companies, or a newer option, agreements with energy-as-a-service firms.

The two models are similar in many ways but possess key differences that can help determine which is best for your facility or portfolio.

According to the U.S. Department of Energy, energy savings performance contracts facilitate infrastructure improvements that pay for themselves over time, which can make facilities less vulnerable to budget impacts from utility rate hikes and extreme weather and enhance their ability to plan and budget.

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