Energy Performance Contracts (EPC) & ESCOs7 / 12
Shared-Savings Contracts
Customer and ESCO split savings (e.g., 50-50); alignment of interest.
10 min read
The shared-savings contract is a major variant of the energy performance contract, in which client and ESCO split the savings rather than the client guaranteeing a fixed payment. It allocates risk and reward differently, with its own advantages and trade-offs.