Energy Performance Contracts (EPC) & ESCOs7 / 12
Shared-Savings Contracts
Customer and ESCO split savings (e.g., 50-50); alignment of interest.
10 min read · Jacob Willis, Net Zero Lead · Last reviewed July 2026
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.
In this lesson
- 01How shared savings works
- 02Shared savings versus guaranteed savings
- 03Advantages of shared savings
- 04Disadvantages and cautions
- 05The role of measurement
- 06Choosing the model
- 07Part of the toolkit
- 08Sources and further reading