Performance contracting is a way of raising the necessary money for investments in energy efficiency that is based on future savings. By definition, the future savings must be greater than the costs.
Performance contract or otherwise known as contract energy management can be a way for our customers to pay for measures to reduce energy costs and waste disposal costs, or to recover materials.
AMS takes on the designs, installations, financing and if required, the operation of a new product, system or technology. We are then paid based on the savings that is achieved - i.e, the performance.
Performance contract advantages that we can offer include:
Upgrade of aging plant & equipment using energy savings.
Improve NABERS rating.
Provide guaranteed returns of energy savings.
Extend plant & equipment life by 20 years.
Sustainable savings over 20 years.
Performance contracting is an alternative and risk-free way of raising the necessary upgrade capital, it also allows customers to re-invest in their properties without interrupting a properties cash flow or affecting investment value. AMS is responsible for the design, installation, financing and operation of the new systems product or technology. Operations of the building are bench marked from its historical energy costs.
Following the completion of works, the energy consumption is monitored with AMS then being paid based on the efficiencies achieved, i.e. the savings achieved through the improved performance and reduced cost. By definition, future savings must be greater than the costs.