Energy Service Agreements | EnergyLink

Energy Service Agreements

Let our team design-build an ESA-funded, cash-flow positive energy project for you

What is an Energy Service Agreement?

Energy Service Agreements (ESAs) are a relatively new kind of third party funding option which enable commercial and industrial businesses, nonprofits, municipalities, and other government entities to install renewable systems and energy efficiency upgrades with zero upfront costs. ESAs involve a third party investor or developer that provides the capital to install and maintain energy systems for a client in exchange for regular service charges based on the actual performance of the installed systems. The investor may also take advantage of any available tax credits for products installed in the project.

Usually these agreements are facilitated using an Energy Service Provider or an Energy Service Company like EnergyLink that can design and build energy systems and facilitate funding for the project by finding an investor to back the Energy Service Agreement.

Reasons to use an ESA to fund your energy projects

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No available capital

Your company wants to pursue portfolio wide installations or retrofits, but does not have cash for capital investments.

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Avoiding risk

Your company is risk adverse and wants a third party to take on underperformance risk and provide project management.

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Financial planning

Your company is looking for a financing mechanism with a contract term as short as 5 years and the option to buy out annually.

Benefits of using an ESA

Lower electric rates than what your utility charges

No responsibility for maintenance and repairs

No upfront costs to make critical energy improvements

Benefits investors get from owning SSA-funded energy systems

Predictable cash flow from the customer through regular service payments

Ability to redeem and earn all state and federal solar tax credits from the project

Ability to sell Renewable Energy Certificates (RECs), depending on the state

Best industries for ESA-funded solar projects

Which energy improvements do ESAs fund?

Energy Service Agreements are more flexible in what they can fund than Power Purchase Agreements or Solar Service Agreements, which can only fund solar installations. ESAs can fund:

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Solar pv panels

Usually with a minimum of 1 MW solar sizing required for the investor to be interested.

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CHP units

To convert natural gas and waste heat from operations into on-site power.

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Large battery applications

To store the power generated from solar or CHP for use at times you set or in emergencies.

Start an ESA-funded energy project today

EnergyLink’s in-house engineering and finance teams will walk you through the process to design the energy improvements you need to realize the energy savings you’re looking for, then help you find an investor to back an ESA and get all improvements installed.

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Start an esa-funded project

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