WHAT IS A PERFORMANCE CONTRACT?
A performance contract for energy efficiency products or services is an agreement between a sponsor and a customer in which the sponsor's compensation is directly tied to the actual energy or cost savings that are achieved throughout a defined contract term. As part of the performance contract, the sponsor and customer develop a mutually agreeable method for demonstrating the energy or cost savings. Based on the results of this agreed upon approach, the sponsor reports the savings to the customer, and the customer pays the sponsor for the savings that have actually been achieved.
HOW CAN PERFORMANCE CONTRACTING HELP ME GROW MY BUSINESS?
By ensuring customers a minimum level of return on their investment, their project risk is minimized – encouraging them to proceed with projects that they otherwise would not have embarked on.
THE BUSINESS OF ENERGY EFFICIENCY
Often the missing link in energy efficiency is an understanding of the business side of energy efficiency or energy management. How do you sell it, finance it and get building management to make the decision to take action? How do you structure the transaction so that both the sponsor and the customer reap maximum benefits? Innovative Energy Solutions can show you how performance contracting can help you turn KWH into bottom line money.
WHERE CAN I LEARN MORE ABOUT MEASUREMENT AND VERIFICATION (M&V)?
Various approaches to measuring and verifying a project's energy savings are defined in the international performance measurement and verification protocol (ipmvp). The ipmvp is a U.S. department of energy led initiative created to help address financing barriers for energy efficiency projects. North America's energy service companies have adopted the protocol as the industry standard approach to M&V. To download a copy of the protocol, go to www.ipmvp.org or for more information call 1-800-kw-therm.
HERE'S HOW A PERFORMANCE CONTRACT WORKS:
Your high-energy bills may be due to obsolete, inefficient, or aging equipment. For example, your HVAC systems may not be able to produce a comfortable and healthy environment, or your physical plant may be outdated. Today's products, such as lighting, are more energy-efficient than technology introduced just a few years ago. By partnering with Innovative Energy Solutions, you can put those wasted energy dollars to better use. Innovative Energy Solutions will recommend cost-saving improvements, implement the recommendations you choose with no up-front costs, and insure the resulting savings will cover all project costs (usually within seven to ten years). Innovative Energy Solutions assumes all project risks and guarantees savings projections in writing. If the energy savings are not adequate to cover total Innovative Energy Solutions pays the difference.
With a performance contract from Innovative Energy Solutions, the old and obsolete equipment is replace with newer, more efficient technologies such as lighting, heating and cooling systems and temperature control systems which will help your facilities experience fewer breakdowns and reduced maintenance costs. And when facility occupants enjoy improved lighting, better air quality and more comfortable temperatures, they are likely to be happier and more productive.
WHY CHOOSE INNOVATIVE ENERGY SOLUTIONS FOR YOUR PERFORMANCE CONTRACT? EXPERIENCE, STABILITY AND DEPENDABILITY!
Energy savings performance contracting is a smart, no cost and increasingly common way to make facility improvements that save energy and money. A performance contract enables your facility to make needed renovations with no initial capital outlay and no financial risk because the project is paid for entirely from the resulting energy savings. Innovative Energy Solutions is one of the most experienced providers of comprehensive energy savings performance contracting services in the World. Innovative Energy Solutions specializes in the evaluation, design engineering, construction and management of energy savings projects for the colleges and universities, hospitals and laboratories, k-12 school districts, municipalities, state government and private industry.
With Innovative Energy Solutions as your partner, you can tackle multiple energy-efficient projects throughout your facility. Innovative Energy Solutions performance contracting program offers a streamlined approach to making facility improvements happen. Our team will continue to work as your partner ensuring that completed projects provide optimal long-term energy savings and operational performance.
COST EFFECTIVE HIGH QUALITY
Innovative Energy Solutions is able to deliver the full breadth of performance contract services at the highest quality with the most cost effectiveness because of the technical and engineering resources of in-house energy professionals and the company's strong buying power.
A DECLARATION OF INDEPENDENCE
Innovative Energy Solutions independence from manufacturers or maintenance service companies allows complete objective recommendations based solely on a client's best interests.
THE BENEFITS OF PERFORMANCE CONTRACTING
CONVERT LIABILITIES INTO ASSETS
Performance contracts can reverse the problems caused by deferred maintenance and can tackle energy efficiency projects even if no funds are available. And Innovative Energy Solutions' comprehensive approach helps clients maximize energy savings and facilities renewal.
Upgraded systems and equipment will lower energy costs and long-term maintenance costs. Innovative Energy Solutions has implemented thousands of dollars in comprehensive energy conservation project that provide 2 to 10 year simple paybacks in energy savings. Energy savings performance contracting is a smart, affordable and increasingly popular approach to make building improvements that save energy and money. Any large building or group of buildings is an ideal candidate for performance contracting, including city, county, state and federal buildings, school districts, colleges and universities, hospitals, commercial office buildings, and multi-family housing units.
Remember: Innovative Energy Solutions energy savings performance contracting program is backed by our written guarantee. Innovative Energy Solutions guarantees that the savings realized during the term of our agreement will cover the cost of all improvements. At the end of each year, if the program has not met the guaranteed annual savings, Innovative Energy Solutions will refund the difference.
Converting utility budgets into building infrastructure improvements can be a reality with performance contracting. For instance, government entities can stretch limited budgets further, putting taxpayers’ money where it really counts. For all building owners, modern energy systems can increase property value and improve your building’s marketability. With performance contracting, even if funds are not available or budgets have been cut, you still can afford improvements with no up-front capital.
Send mail to
with questions or comments about this web site.