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Performance Contracting and Energy Service Companies

Energy service companies (ESCOs) install energy efficiency equipment and appliances and then guarantee savings to the customer. There are also models where companies install the equipment and lease it to the end user. Energy service contracts can be combined with solar photovoltaic (PV) installations. In nascent market, energy service companies could be supported by development of an energy savings insurance product that in effect guarantees the energy savings promised by the ESCO.

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