Managed Energy Service Agreement | EnergyLink

Managed Energy Service Agreement

Start a MESA-funded energy redevelopment project for no money down and lower your utility costs without having to deal with the challenges of owning the systems installed

What is a MESA Contract?

A Managed Energy Service Agreement (MESA) is a contract used for large energy projects (typically $500,000 and up) where a third-party owner funds that project and assumes responsibility for managing the energy usage. This includes handling the installation of all energy efficiency and renewable upgrades in the project scope and payment of utility bills. In exchange, the client pays an agreed-upon monthly fee based on previous utility history which is lower than the previous monthly utility expenditures, resulting in positive cash flows to the organization.

Businesses and nonprofits love MESA-funded projects because they do not have to deal with the challenges of operations and maintenance costs yet still realize positive cash flows through affordable and stable MESA payments. Investors have an affinity for Managed Energy Service Agreements, as they are able to secure the investment tax credits generated by the solar array as well as stable monthly MESA payments in exchange for a safe investment in renewable and energy efficiency assets.

Benefits of Managed Energy Service Agreements

No operations & maintenance costs

The third-party owner will assume the responsibility of handling all operations and maintenance costs for the specified MESA term.

Lower energy costs immediately

With a MESA, you only pay a prearranged monthly fee which is lower than your current utility costs, resulting in positive cash-flows.

Avoid large capital expenditures

After six years, you have the option to extend the agreement or purchase your energy system using cash or other financing options like leases.​

Pay for new projects with energy savings

Energy savings realized from MESA projects can be utilized for other projects in your organization, whether they are energy related or not.

Streamline facility management

Under MESA contracts, clients have a single point of contact to make payments to and to engage with for repair and maintenance issues.

Option to purchase system

After six years, you have the option to extend the agreement or to purchase your energy system using cash or other financing options like commercial loans.

Benefits for third-party investors

Expand portfolio

MESA-funded energy projects allow investors to expand their investment portfolio with an option that is less risky than typical mid-size commercial real estate investments.

Quick ROI

All available tax credits are realized immediately after project completion, making payback for the project much faster than other investments.

Flexible terms

MESAs can last from six to twenty years and do not have to be renewed, making them a very flexible investment for savvy investors.

Industries that will benefit the most from using a MESA

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Nonprofit organizations

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Public schools

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Large commercial and industrial

Why wait? Start your MESA-funded energy project today

The EnergyLink team knows how to navigate the complex MESA process and make it simple on your end while also ensuring the project is designed and built to the standards required to get the best performance from your building while minimizing energy use.

Start a MESa-funded energy project today

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