Utility Dive•8 days ago
Federal agencies look to performance contracts as energy efficiency aid shrinks
Key Takeaway
Federal agencies are increasingly relying on performance-based contracts to fund energy efficiency projects, creating a consistent market for developers and service providers amidst declining traditional aid.
AI Summary
- •Federal agencies are increasingly utilizing statutory authority for Energy Performance Contracts (EPCs) to fund energy efficiency upgrades.
- •EPCs enable significant efficiency improvements with minimal up-front capital, shifting project costs to guaranteed energy savings.
- •This reliance on EPCs is growing as traditional federal energy efficiency aid and funding sources are shrinking.
- •The trend highlights a stable, government-backed market opportunity for energy efficiency developers and service providers, offering a predictable revenue stream based on performance.
Topics
financingpolicy