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Is Energy Efficiency Worth the Cost?

Energy efficiency has become increasingly important to businesses, in line with corporations increasingly striving for sustainable green energy sources to be more ESG-compliant. Energy performance contracts are a great way to help achieve that goal - but do they provide enough value to make them worth the investment? Find out in this article where we discuss the costs, pros and cons of energy performance contracts.

Energy Efficiency - Are They Worth It?

The short answer to this question is yes, energy efficiency is definitely worth the cost. Here’s a more detailed look at what EPCs are, how they work and why they’re worth the investment.

An EPC or an energy audit is a type of contract in which a company agrees to make energy-saving improvements to your facility. The agreement outlines the projects that will be completed, the costs associated with each project and the specific energy savings that will be achieved. In most cases, the company will also agree to guarantee energy savings for a certain period of time.

One of the main benefits of an EPC is that it can help you finance energy-saving projects without any upfront costs. The company that completes the projects will typically finance them and then recoup their investment through the guaranteed energy savings. This means you can make significant improvements to improve the efficiency of your facilities' energy consumption without any impact on both your bottom line and the environment.

Another benefit of an EPC is that it can help you take advantage of utility rebates and other incentives. Many utilities offer rebates and other incentives for businesses that make energy-saving improvements. These incentives can often cover a large portion of the costs associated with an EPC, making them even more affordable.

Finally, an EPC can provide peace of mind by ensuring that your facility is operating as efficiently as possible. When you sign an EPC, you’re effectively hiring someone to ensure that your facility is running

Do You Qualify?

To qualify for an energy performance contract, your building must first undergo an energy audit. The audit will identify opportunities for energy savings and cost-effective measures to improve the efficiency of your building. Once the audit is complete, you'll work with the contractor to develop a plan that details the work to be done and the associated costs.

How Much Can You Save?

You can save a lot of money with an energy performance contract. In fact, you could save enough money to pay for the cost of the contract itself in just a few years. Of course, the amount you save will depend on the size and type of building you have, as well as how much energy you use.

An energy performance contract is a great way to save money on your energy bills, and it's worth the cost.

Pros and Cons

When considering an energy performance contract (EPC), it is important to evaluate the pros and cons to see if it is right for your business.


  • Can provide significant energy savings

  • Can improve the overall efficiency of your facility

  • Can be used to finance energy efficient projects with little or no upfront costs

  • May be eligible for tax incentives or rebates

  • Can help you meet environmental regulations


  • May require a large investment upfront

  • Requires ongoing monitoring and maintenance

  • The energy savings may not cover the cost of the contract

  • You may be locked into a long-term contract that may not be beneficial for your business

  • You must rely on the contractor's expertise and performance to ensure your energy savings goals are achieved


An energy performance contract is an investment that can provide potentially significant long-term advantages in the form of reduced energy costs, improved employee morale, and a more productive workforce. The main point to consider when making the decision on whether to enter into an EPC is whether it will bring long-term benefits for your business.

If potential cost savings or operational improvements can be identified from implementing this type of program, then it could be worth considering investing in an energy performance contract.


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