Energy Savings Performance Contract
Okay, kiddo! Have you ever heard of saving energy before? It means using less of things like electricity, gas, and water so we don't waste them or spend more money than we need to.
Now, an energy savings performance contract is like making a promise to save energy and money at the same time. This promise is made by a company or organization, like a school or hospital, to an energy service company (ESCO), which is another group that helps save energy.
The ESCO will look at how much energy the company is currently using and then figure out ways to use less energy without affecting the company's operations or activities. This could include things like upgrading old equipment with newer, more energy-efficient models or putting in better insulation to keep heat or cold air from escaping.
The ESCO will then make some changes to the company's energy use, and the company promises to pay the ESCO with some of the money they save from using less energy.
So, in summary, an energy savings performance contract is when a company agrees to work with another company to save energy and money by making changes to how they use energy and paying a portion of the savings to the other company. It's like getting a bonus for doing something good!
Now, an energy savings performance contract is like making a promise to save energy and money at the same time. This promise is made by a company or organization, like a school or hospital, to an energy service company (ESCO), which is another group that helps save energy.
The ESCO will look at how much energy the company is currently using and then figure out ways to use less energy without affecting the company's operations or activities. This could include things like upgrading old equipment with newer, more energy-efficient models or putting in better insulation to keep heat or cold air from escaping.
The ESCO will then make some changes to the company's energy use, and the company promises to pay the ESCO with some of the money they save from using less energy.
So, in summary, an energy savings performance contract is when a company agrees to work with another company to save energy and money by making changes to how they use energy and paying a portion of the savings to the other company. It's like getting a bonus for doing something good!