Reducing Risks In Energy Upgrades

Energy Performance Based Contracts

and how they work...

Reduce your risk in energy upgrades by using a performance based contract or some elements of it.  This shares the risk of a project not creating the savings claimed or predicted between the owner and the supplier. Here's some simple steps to follow:

Step 1: Decide on what works or projects you want to get done (lighting, heating, insulation, renewables).

Step 2: Get some quotes (with guarantees for payback periods, insurance etc).

Step 3: If a supplier tells you the system will pay itself back in 3 years, offer to pay over 3 times the savings you get each month for one year. This reduces your risk and will ensure the supplier is giving you correct information.  Alternatively, hold back a percentage of the project costs (say 20%) and pay this over after 6 months once savings have been verified.

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Don't ignore the ELEPHANT in the room.