In today’s world, energy efficiency and energy conservation are a popular topic, especially since they usually mean reduced costs. Many have heard the word ESCO, and may even know what it stands for, but what exactly does it mean?
An ESCO, ESCo, or Energy Service Company, is an enterprise which provides a wide selection of energy solutions that strive to be all-inclusive. These plans include the design and application of the savings projects, energy conservation efforts, power generation, energy supply, outsourcing of energy infrastructure and risk management. Some examples of ESCOs are Energetix, Accent Energy, HIKO Energy and Intelligent Energy.
ESCOs provide an analysis of the building, and then design an energy-saving, cost effective solution. The project is installed, and maintained during the ‘payback period.’ Generally, the savings made in energy costs are used as returns on the investment over a pre-set period, usually between five to twenty years. In the case that the project does not bring in sufficient returns, the ESCO usually pays the difference.
According to the Energy Services Coalition,
“A qualified ESCO can help you put the pieces together:
- Identify and evaluate energy-saving opportunities
- Develop engineering designs and specifications,
- Manage the project from design to installation to monitoring
- Arrange your financing
- Train your staff and provide ongoing maintenance services, and
- Guarantee that savings will cover all project costs.”
In the New York area, there is a very large number of ESCOs, including Hudson Energy Services, HIKO Energy, Gateway Energy Services, U.S. Gas and Electric and many others.