“U.S. energy service companies (ESCOs) are on track to generate about $7.6 billion in revenue this year, up 15 percent from 2016
ESCOs develop, design, build and finance projects that save energy and reduce energy costs at customer facilities. Most of them do this through an energy performance contract they sign with the customer, which the project to generate actual energy cost savings in order for the provider to get paid.
The customer usually does not pay up front, but instead pays for the equipment and services through the contract payments which, together with their utility bills, should be less than what they were paying their utility before.
In a recent example, Siemens worked with Gulf Power to install energy and water conservation upgrades at 58 facilities at Naval Air Station Whiting Field in Milton, Florida, under a $10 million energy savings contract with the government. The 13-month project included more than 10,000 LED light fixtures, high-efficiency HVAC equipment upgrades, low-flow water fixtures, transformer replacements and building control systems upgrades that together are estimated to save the air station $500,000 a year.”
Click here to read more from GreenBiz