top of page
  • Writer's pictureTaylor Knoche

What is an Energy Service Agreement?

Updated: Apr 28, 2023


AI Generated Image by Deep AI. Keywords; Energy, Service, Power, Lines.

An energy service agreement (ESA) is a contract between a customer and an energy service company (ESCO) to improve the customer's energy efficiency. Under an ESA, the ESCO designs, installs, and finances the energy efficiency improvements, and the customer pays for the improvements over time through reduced energy bills.


ESAs can be a good option for businesses and organizations that want to improve their energy efficiency but don't have the upfront capital to invest in new equipment or upgrades. ESAs can also be a good option for governments and municipalities that want to improve energy efficiency in their buildings and facilities.


There are many different types of ESAs, so it's important to choose the one that's right for your needs. Some factors to consider include the length of the contract, the scope of the work, and the financing terms.


If you're interested in learning more about ESAs, there are a number of resources available online and in libraries. The U.S. Department of Energy has a website with information on ESAs, and the National Association of Energy Service Companies (NAESCO) has a directory of ESCOs.


Here are some of the benefits of using an ESA:

  • You can improve your energy efficiency without having to invest any upfront capital.

  • You can save money on your energy bills over the life of the contract.

  • You can get help from an expert to design and implement energy efficiency improvements.

  • You can reduce your environmental impact by using less energy.

Here are some of the things to consider when choosing an ESA:

  • The length of the contract. ESAs typically range from three to 20 years.

  • The scope of the work. The ESCO should be able to provide a detailed scope of work that outlines all of the energy efficiency improvements that will be made.

  • The financing terms. The ESCO should be able to offer a variety of financing options to fit your budget.

If you're considering an ESA, be sure to do your research and choose an ESCO that has a good reputation and experience.

2 views0 comments

Kommentare


bottom of page