Energy Savings Performance Contracting (ESPC) Toolkit

Expanding access to Energy Savings Performance Contracting (ESPC) as a means of financing energy efficiency projects can unlock significant energy savings, improve public-sector infrastructure, and contribute to climate mitigation efforts, benefiting both the environment and the communities served by these projects. This toolkit provides a collection of resources to help public-sector organizations, state and local governments, developers, and building owners successfully implement ESPC projects. It reviews the best practices and innovative approaches used by states, cities, and K-12 schools to establish and manage performance contracts. The toolkit explains how ESPC can help organizations reduce energy and water usage, meet sustainability goals, and achieve cost savings. The resource is divided into sections tailored to different stages of the ESPC decision-making process, from considering ESPC for energy efficiency projects, to practical tips for implementing them, to evaluating project outcomes. The toolkit emphasizes that performance contracting offers a solution to overcoming budget constraints by providing upfront financing, with repayment covered by guaranteed savings.