Learn more about Energy Savings Performance Contracts
An Energy Savings Performance Contract can be a cost-effective way to fund energy efficiency retrofits to a facility without upfront capital costs.
The Energy, Minerals and Natural Resources Department (EMNRD) provides technical assistance for public entities considering an Energy Savings Performance Contract.
Who is Eligible?
- Public entities (including state agencies, local governments, and public universities) may receive EMNRD technical assistance.
What is Offered?
- EMNRD reviews and approves Energy Savings Performance Contracts for public entities.
- EMNRD has established state price agreements for Energy Savings Performance Contracts with Energy Service Companies.
How Can I Apply?
- Contact EMNRD staff to discuss technical assistance.
Eligibility Guidelines
- Eligible entities include state agencies, Nations, Pueblos, Tribes, counties, municipalities, public K-12 schools and institutions of higher education, and other political subdivisions of the state, such as mutual domestic water consumers associations.
Frequently Asked Questions
What is an Energy Savings Performance Contract?
An Energy Savings Performance Contract is a legal and financial tool used to complete energy efficiency retrofits without upfront capital expenditures. Through an Energy Savings Performance Contract, a facility owner contracts with an Energy Service Company to identify and install cost-effective energy efficiency measures. The ESCO is paid through the energy cost savings, and if the installed measures fail to deliver the guaranteed energy cost savings, the ESCO takes the loss.
What is an Energy Service Company (ESCO)?
An ESCO is a specialized firm that develops, installs, and often helps finance comprehensive retrofits designed to improve energy efficiency and reduce maintenance costs for a facility. In the context of an Energy Savings Performance Contract, an ESCO will typically complete an energy audit, recommend cost-effective energy efficiency and/or clean energy retrofit measures, install the recommended measures, and guarantee those measures to deliver a certain level of energy cost savings.
How does EMNRD support public entities considering an Energy Savings Performance Contract?
EMNRD reviews and approves Energy Savings Performance Contracts for public entities, including by providing third-party review of energy audit findings to ensure accuracy. EMNRD has also established state price agreements with ESCOs.
May other organizations contract with a state-approved Energy Service Company?
Yes, organizations that are not eligible for EMNRD technical assistance (such as private businesses and nonprofits) may still contract with a state-approved ESCO. New Mexico businesses and nonprofits may also be eligible for the Energy Efficiency Revolving Loan Fund.