Energy Performance Contracting (EPC) is financing provided by Danfoss Solutions. This means that lack of initial capital to perform energy efficiency work is not an obstacle to get started. The concept uses cost savings from reduced energy consumption to repay the cost of installing energy conservation measures.
The EPC model combines several value-added elements. It has the benefits of our EnSave® projects; added to this it offers you funding. It is a contract with guaranteed savings; our 'no cure - no pay' guarantee also applies to EPC financing
Financial benefits of EPC
- You can realize projects irrespective of tight budgets
- Your financial risk is very small
- You get a positive cash flow throughout a project
- You avoid the need to find and plan for capital funding
Financially, our incentive is to over-perform and share the over-performance with our client, or perform as guaranteed. Failing this we pay back the difference between the guaranteed savings and the realized savings.
EPC and ESCO concepts
The EPC concept is linked to the ESCO (Energy Service COmpany) concept which you can read more about from below link. Danfoss Solutions' business model is based on these two concepts.
