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What’s an ESCO? The LED Connection

What’s an ESCO? The LED Connection

What’s an ESCO? The LED Connection

It’s one thing to change a light bulb, but when you begin thinking about implementing a well-rounded energy efficiency retrofit, there are many moving parts and potential areas for improvement. What was once a simple idea can quickly become a pretty complex project that goes above the head of your facility maintenance department. That’s where ESCOs come in.

What’s an ESCO?

 ESCO stands for Energy Service Companies. They specialize in developing, designing, building and funding projects that save energy, reduce energy-related costs, and decrease operations and maintenance costs at customers’ facilities. They are project developers and managers, adept at installing a number of energy conservations measures and assuming any risk linked to the project. The Office of Energy Efficiency and Renewable Energy notes that ESCOs are distinguished from other firms that offer energy-efficiency improvements in that they use performance-based contracting methodology. Meaning, when an ESCO implements a project, the company’s compensation is directly linked to the actual energy cost savings.

Energy Savings Maximized

ESCOs tend to be a viable option when organizations are evaluating large retrofit projects. Their breadth of experience in design, energy measure implementation and risk mitigation become very valuable. Moreover, they provide a financial guarantee to project lenders that the energy savings generated over time will cover the debt service. Projects typically require a large initial capital investment and contract terms usually range between seven and twenty years depending on the types of measures installed.

Energy Service Companies begin by performing an in-depth energy audit, they then present a comprehensive plan to their customer that meets their energy saving goals and facility’s requirements. After the green light is given, it’s full steam ahead as the ESCO engineers, designs and implements the project from start to finish.

The LED Connection with EarthTronics

ESCOs generally provide all of the services identified by the organization that’s required to implement the actual energy retrofit. EarthTronics has a history of working with many ESCOs, both on a local level and nationally, partnering with them as a key lighting distributor and providing earth-friendly LED Earthbulbs, fixtures, and lighting retrofit solutions, helping them maximize the energy savings for their customer.

Serving as an LED lighting resource for ESCOs across the country, feel free to contact us anytime. As you are planning an energy retrofit alongside an Energy Service Company, we have the know-how, inventory and capability to jump in, providing energy saving lighting solutions that make a difference.

Filed Under: News

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