Energy Performance Contracts (EPC) & ESCOs6 / 12
EPC Risks & Mitigants
Shortfall risk (savings < forecast); guaranteed savings clauses; M&V disputes.
10 min read · Jacob Willis, Net Zero Lead · Last reviewed July 2026
Energy performance contracts transfer much risk to the ESCO, but they are not risk-free for the client. Long-term contracts based on measured savings create their own complexities, and understanding the risks - and how to manage them - is essential to a successful EPC.
In this lesson
- 01The savings shortfall question
- 02The M&V dispute risk
- 03Baseline and adjustment risk
- 04Long-term commitment risk
- 05Measurement boundary and interaction risk
- 06Quality and persistence risk
- 07Aligning interests
- 08The key to success
- 09Sources and further reading