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PPESCO’s Focus

A PPESCO provides whole-building energy improvements in an underserved market of small to medium-sized public-purpose buildings. Its emphasis is positive economic value and positive environmental effects.

Building type and project size

High-value buildings with energy retrofit values in excess of $1 million are well served by the ESCO market. PPESCOs target smaller projects.

Comprehensive and deep

Typically, ESCOs pursue improvements such as heating, air conditioning, and ventilation, and lighting. PPESCOs make those improvements, too, but they use ‘patient capital’ (long term and with low interest rates) as the investment funding mechanism. This allows for deeper energy savings measures to be installed, specifically improvements to the building envelope (air sealing and insulating), renewable energy options (for example, solar, wind, geothermal (and introduces the consideration of switching to alternative fuels. As a way to achieve further, deeper energy savings PPESCOs work with building owners and occupants for the duration of the EPC to modify their energy consumption behaviors. Although these “non-meterable” actions do not lend themselves to measurement (unlike HVAC and lighting improvements), PPESCOs commit to them to achieve greater efficiency and greater savings for all stakeholders.

Orientation to mission and impact

Given a PPESCO’s commitments to environmental and economic impacts of whole-building energy reductions, it is understandable that organizations wishing to undertake PPESCO activity should be well-informed about those impacts, mission driven, and entrepreneurial.

Prospective PPESCOs should have established expertise in saving energy in buildings as a means, among other things, of addressing climate change. PPESCOs targeting affordable housing and / or buildings located in low-income neighborhoods simultaneously address social and environmental impacts.