Contracting Method

Contracting method for financing capital improvements, which allows cost reductions to fund energy upgrades.

Data Type: 
Constrained List
Category: 
Unit of Measure: 
N/A
Source: 
Sector: 
Commercial, Residential, Multifamily
List Options Option Definition Unit of Measure Source
Build own operate transfer Under a build-own-operate-transfer (BOOT) model the contract may involve a contractor designing, building, financing, owning and operating the equipment for a defined period of time and then transferring this ownership across to the client. N/A
Chauffage Under a chauffage contract the contractor takes over complete responsibility for the provision to the client of an agreed set of energy services (e.g. space heat, lighting, motive power, etc.). N/A
Fee for service Under a fee for service contract the owner of the asset (lessor Ð the contractor) owns the equipment and essentially rents it to the lessee for a fixed monthly fee. N/A
First out Under a Ôfirst outÕ contract the contractor is paid 100% of the energy savings until the project costs Ð including the contractor's profit Ð are fully paid. The exact duration of the contract will actually depend on the level of savings achieved: the greater the savings, the shorter the contract. N/A
Guaranteed savings Under a guaranteed savings contract the contractor guarantees a certain level of energy savings and in this way shields the client from any performance risk. N/A
In house In-house assessment and installation does not require any third party contracts, as all work is performed by local personnel. N/A
Net metering credit purchase agreement A net metering credit purchase agreement, or NMA, is designed to reduce electricity costs for the public entity while providing consistent energy payments to the project owner over the term of the contract, which helps finance and support renewable energy installations. N/A
Power purchase agreement Power purchase agreements, or PPAs, are contracts in which the public entity buys the electricity generated by a renewable energy system from the project owner. N/A
Shared savings Under a shared savings contract the cost savings are split for a pre-determined length of time in accordance with a pre-arranged percentage: there is no ÔstandardÕ split as this depends on the cost of the project, the length of the contract and the risks taken by the contractor and the consumer. N/A
Term ID: 0139d0fb-6f1b-4720-b75f-7516181af411
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