Brad Chapman Alliance Building Solutions San Bernardino County gives an overview of energy performance contracting (EPC).
Here are several critical issues you need to know about EPC.
Brad Chapman Alliance Building Solutions San Bernardino County: What is Energy Performance Contracting (EPC)?
Also called utility energy service contracting (UESC), energy performance contracting is a service to improve the energy efficiency of commercial buildings through retrofitting with better technologies. Retrofitting may include renewable energy, upgrading lighting, HVAC, building controls, and water systems with energy-efficient technologies.
In addition, hybrid vehicle fleets and ground source heat pumps are now part of EPC. According to Brad Chapman Alliance Building Solutions San Bernardino County, performance contracting means that the energy savings from efficient technologies will fund all the project costs, including the loan repayment.
Brad Chapman Alliance Building Solutions San Bernardino County: Who Delivers a Typical EPC project?
An Energy Service Company (ESCO) is responsible for executing energy performance contracting, and the agreement contains these key issues.
- End-to-end service: The ESCO offers all the key services, such as designing and implementing the project at the client’s location and conducting energy audits by monitoring and verifying project savings over the long term.
- Customized solutions: After a comprehensive analysis of the customer’s needs, ESCO will develop tailored-made solutions to meet a specific facility’s needs, including water conservation, energy efficiency, sustainable materials and operations, distributed generation, and renewables.
- Project Savings Guarantee: The ESCO guarantees that the savings the project makes will be enough to cover the project financing cost throughout the project life
Brad Chapman Alliance Building Solutions San Bernardino County: What Are the Typical Sources of Finance for EPC?
- Financing Marketplace: Large commercial banks offering competitive rates have set aside billions of dollars to bankroll EPC projects.
- Financing Vehicles – ESCOs can fund energy performance contract projects through tax-exempt lease-purchase agreements or municipal leases, which let the client fund an EPC project with little liability.
- Master leases, commonly called state or local government leasing pools, let individual projects reduce their financing expenses by participating in huge pooled funding.
- State or local government bonds offer minimal interest rates compared to municipal leases but take a long time to execute and often need voter approval.
- Revolving loan pools provide financing at subsidized interest rates. However, loans have a long waiting list.
- With power purchase agreements (PPAs), the client purchases an allocated generation project’s output (e.g., kWh or pounds of steam) instead of the real design.
Brad Chapman Alliance Building Solutions San Bernardino County: The Current Policy in CA Regarding ESCOs
The Department of General Services (DGS) supervises projects for the bulk of the buildings and has also created a bank of qualified energy services companies under Public Utilities Code Section 388.
Brad Chapman Alliance Building Solutions San Bernardino County says that the legislation lets state agencies contract with energy savings companies. DGS made implementing ESCO projects straightforward and efficient by setting up a team and creating processes in 2017 in the second quarter.
There’s more info about California’s Energy Efficiency Retrofit Program on its website.
Brad Chapman Alliance Building Solutions San Bernardino County: Experienced Energy Company
Brad Chapman Alliance Building Solutions San Bernardino County has a strong team of specialists, such as executives, project managers, mechanics, engineers, etc. For this, the company is an expert in energy services performance contracting, renewables, including solar batteries with microgrid capabilities, and more.