
Energy Service Companies (ESCOs)
Category: Business Practices, Energy Service Companies (ESCOs)
An ESCO is a company that specializes in energy savings with technical solutions. ESCOs help their clients understand their energy use while identifying inefficiencies and opportunities for improvement. Many ESCOs guarantee energy savings over the payback period and can be held accountable to pay the difference if the project does not meet its projected return on investment.
Benefits
- Provides campuses with outside expertise and experience in energy efficiency
- Guaranteed energy savings
- ESCO can finance energy saving project
Challenges
- Requires government support
- Legal expertise necessary when creating precise and accountable contracts
- More expensive than completing projects in-house.

Impacts
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GHG Impact
Moderate
More InfoIncreasing energy efficiency across campus can add up to significant CO2 emission reduction, especially if the campus is older.
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Economic Impact
Net Savings
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Feasibility
Doable
More InfoWith an ESCO’s promise for an ROI without extra work from the campus, this solution proves to be easier than others.
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Timeline
1-2 years
More InfoMany ESCOs would welcome such a large client.
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Maintenance
High
More InfoCampus staff will need extra aid to complete numerous projects.
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Publicity
That's interesting
More InfoNot very creative.