BBS has been implementing energy efficient projects for over 25 years, having designed hundreds of millions of dollars worth of Energy Performance Contracts. We provide exceptional design, implementation guidance, energy-efficient solutions, innovative technologies, and carbon footprint reduction applications.
What is an EPC (Energy Performance Contract)?
An EPC is an agreement that allows the customer to take the dollars that would typically have been paid to your electric, natural gas, and local fuel oil suppliers, and invest that money back into the buildings and infrastructure.
What are the Driving Factors for an EPC?
Facility modernization is the main driver for Energy Performance Contracting. Municipal and state government buildings, universities, K-12 schools, and hospitals typically lack sufficient capital and maintenance budgets and can use EPCs to improve facilities. Facility Managers are often facing building equipment failures and disrepair that require immediate attention and in the absence of capital appropriation, the EPCs can provide the capital money required to replace failing equipment.
Climate change is another key driver of Energy Performance Contracting, as energy efficiency is the first step for organizations to meet their energy and greenhouse gas reductions, and this can be achieved with no increase in capital budgets with an EPC.
Financing an EPC
EPCs are financed with long term debt or leases where savings are guaranteed by an ESCO (Energy Service Company) from the operational energy savings from the efficiency measures applied to the building to pay for the full cost of the project. There are robust and competitive third-party financial companies that provides this financing, such as Bank of America, GE Capital, Citibank, National City, PNC Bank, and more.
An EPC is directly financed with the customer, which in most cases are the public sector, such as K-12 schools, that can get the best interest rates for up to 20 years through a tax-exempt lease purchase agreement.
Is an EPC right for you?
- Evaluate your facilities and their potential for energy improvements.
- Decide what is a priority and define goals.
- Assemble an informed team – your architect and engineer, along with maintenance, financial, legal, and procurement staff, will make informed, technical decisions about an EPC and its benefits.
- At BBS, we take a holistic approach to each and every EPC. As architects and engineers, we incorporate the EPC into your overall infrastructure and facilities plan.
- We understand the nuances of technology and controls and will specify the appropriate controls and capacities for your buildings.
- Your EPC isn’t transactional for BBS. As your architect and engineer, we have the District’s long term goals in mind and will protect the District’s best interests before, during, and well after the EPC is in place. We’re your partner every step of the way.
Contact us today to learn more about how BBS and EPCs can help move your facilities toward modernization and energy efficiency.