Energy Savings Performance Contracts (ESPCs)
- Government partners with private sector companies and utilities to install energy and water conservation measures without the need for upfront appropriations.
- Private sector companies take on the performance risk of the equipment and obtain competitive financing from a third-party lender.
- Agency pays them back over time from the energy and water savings associated with the more efficient equipment.
- Provides a solution to more immediately upgrade aging infrastructure and critical building systems when appropriations are not readily available.
VA awarded $356 million of energy performance contracts from 2012 to 2016
- Approximately $26 million in annual savings for VA
- Addressing infrastructure and building system needs at 42 VA medical centers across the country
- Reduced energy usage by an average of 26% and water usage by an average of 18%
- Ingenuity and large impact in leveraging energy and related savings to finance the critical replacement of a central boiler plant
- Projected to save $817,000 annually in natural gas and electricity costs
- Recognition from White House and Department of Energy