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How to Create and Build a
Public-Purpose Energy Services Company

An energy services company with a different kind of vision

PPESCOs can serve a variety of markets

Welcome to PPESCOHOWTO.org, the site for:

  • Social entrepreneurs and organizations—whether nonprofit or for-profit, whether public or private—interested in forming and operating a public-purpose energy services company (PPESCO); and
  • Social-enterprise investors and funders interested in supporting these endeavors.

Owners of public-purpose buildings are encouraged to explore this site, too, to discover how they might benefit from a PPESCO project for their own buildings.

PPESCO – Energy services with significant societal benefits

Public-purpose energy services companies improve building energy performance in small to medium-sized buildings that serve a public purpose. They operate on a smaller scale than do typical ESCOs, making energy savings—not dollars—their bottom line for improvements to buildings in:

  • Affordable multifamily housing
  • Education (K-12)
  • Health care
  • Municipalities

How it works

PPESCOs make long-term capital available to building owners for comprehensive efficiency, alternative fuels, and renewable energy services.

PPESCOs takes a whole-building approach to maximizing energy savings—averaging a minimum of 30% in energy savings. They have professional staffs of engineers and energy consultants who apply a whole-building approach to reducing energy use. Support staff provide a full complement of administrative and technical services to assure building improvements are cost-effective, and that energy savings can be verified by third parties.

Well-managed, lower energy use helps building owners fund comprehensive energy improvements, reduce greenhouse gas emissions, and lower operating costs.

Building owners pay back the capital financing through the savings they obtain from lower energy use and reduced operating costs on their buildings—all while becoming cash flow positive.

Investors realize steady returns because the quality control on cost-effective and comprehensive energy improvements guarantees the energy savings to the buildings’ owners.

What PPESCOs provide for:

Organizations and other entities that own public-purpose buildings

  • Technical assistance for start-to-finish building energy improvements, and beyond
  • Project financing or access to financing
  • Well-managed installation of whole-building energy improvements (and closely monitored verification of those installations)
  • Energy performance contracts, to guarantee the energy savings of each project. Identify for the building owner the full range of energy improvement options—from air-sealing and insulating the building’s exterior to lighting, heating, ventilation, air-conditioning, and building-wide equipment upgrades
  • Coordinate capital financing
  • Ensure the correct installation of specified cost-effective energy improvements
  • Help the building owner manage energy performance long after the project is completed, so that optimal energy use becomes the norm, not the exception

 

For investors

  • Mission aligned social-enterprise investing in public-purpose buildings improvements that significantly reduce greenhouse gas emissions
  • Predictable rates of return on investment
  • Investments in durable, stable long term assets

For entrepreneurs

  • An excellent way for a whole-building energy improvement business to build a portfolio of high-quality projects
  • Guidance for entrepreneurs new to this field receive related to technical assistance; project financing coordination; management energy improvement installations; monitoring and verification; energy performance contracts