How you can benefit from guaranteed results through performance contracts
Energy-efficient buildings are more cost-effective and profitable to operate; contribute to a higher-quality environment for those who live, learn or work in the building; reduce greenhouse gas emissions; and conserve natural resources.
What is performance contracting?
Energy performance contracts guarantee a certain amount of energy and water savings that help offset some or all of the costs of facility and infrastructure renewal projects. In performance contracts, the investments needed to pay for energy efficiency improvements are paid for upfront, either from your organization’s capital budget or through financing from a third party for qualified organizations. The expected savings will be reflected in your organization’s operational budget.
Find out how performance contracting can help you achieve energy cost savings. Iain Campbell, VP & President of Global Energy & Building Efficiency, explains how it benefits your bottom line.
Where do the savings come from?
When it comes to buildings, savings can come from a broad range of energy efficiency improvements, such as installing more efficient lighting, replacing inefficient water fixtures with low-flow options, adding insulation and upgrading HVAC equipment, and/or installing a building management system that controls and integrates key mechanical and electrical systems for optimum efficiency.
What happens if the expected savings are not achieved?
If guaranteed energy savings fall short of expected values, Johnson Controls makes up the difference.
How does performance contracting work?
The process starts with assessment. For buildings, this includes the building technology and envelope. For municipalities, this may be expanded to include water meters, traffic lights and other infrastructure. The next step is to develop a list of potential improvements and quantify the cost of each improvement and the savings each improvement should produce. You choose the set of improvements you want to make. Accordingly, a contract then is drawn up which specifies the scope of the energy efficiency improvements to be made, their associated costs, estimated energy and other savings, as well as grants available for project funding and the resulting cost savings. Then the contract is executed. With the contract in place, energy efficiency improvements are implemented, and the actual performance of the items with a guarantee are measured and verified over the duration of the contract.
What are the benefits of performance contracting?
By making your building more energy-efficient, you improve your building’s performance, comfort and energy use. Performance contracting helps you identify improvements that may result in guaranteed benefits to your organization.
To learn more about how building owners like you have benefited from energy-saving performance contracts, read our case studies or download our whitepaper. To find out how you can do so, too, contact us.