Energy Performance Contracting (EPC) is an innovative financing technique that uses cost savings from reduced energy consumption to repay the cost of installing energy conservation measures. Normally offered by Energy Service Companies (ESCOs), this innovative financing technique allows building users to achieve energy savings without up front capital expenses. The costs of the energy improvements are borne by the performance contractor and paid back out of the energy savings. Other advantages include the ability to use a single contractor to do necessary energy audits and retrofit and to guarantee the energy savings from a selected series of conservation measures.
Energy Service Agreement (ESA)
HUD Regulations / Notices / Procedures
Federal Energy Management Program
EPC Database Summary Files
Alternative financing representatives (AFRs) at the Federal Energy Management Program (FEMP) can be contacted to assist with the Energy Performance Contract (EPC) process, answer questions, and access appropriate FEMP resources. FEMP also teaches EPC workshops and telecourses. Learn more about FEMP services and find an AFR.
EPC Training Videos
Understanding the Measurement & Verification (M&V) Process
This training video explains how to measure and verify EPC savings, discusses the key information and documents involved in the Measurement & Verification (M&V) process, and provides instructions on calculating savings for various M&V options.
How Do Baseline Adjustments Affect My Subsidy?
This training video explains how a utility baseline is established, discusses different types of baseline adjustments and what is allowed by HUD, and covers examples of baseline adjustments.
What are Eligible Energy Performance Contracting (EPC) Project Costs?
This training video explains eligible project costs for an EPC, the importance of project costs in an EPC, and how to calculate and allocate project costs as part of the M&V process.
How Do I Determine Frozen Rolling Base (FRB) Savings?
This training video defines the Frozen Rolling Base (FRB) incentive and explains how to calculate and request the FRB incentive.
How Do I Determine Resident Paid Utilities (RPU) Savings?
This training video defines the Resident Paid Utilities (RPU) incentive, explains how the RPU incentive can be used in an EPC, and provides example calculations for determining savings for RPU in the M&V process.
How Do I Determine Add-On Subsidy (AOS) Savings?
This training video defines the Add-On Subsidy (AOS) incentive, discusses the different types of M&V (Option A and Option C) which can be used to determine AOS savings, and explains how to calculate the lesser of project costs/savings and request the AOS incentive.
How Does the 75 Percent Rule Impact Savings?
This training video explains the regulatory basis of the 75 percent rule, how it applies to an EPC in relation to the FRB and RPU incentives, and how to minimize HUD recapture from the 75 percent rule through proper calculation of project costs/savings associated with these incentives.
What is Cross-Subsidization of EPC Incentives?
This training video explains the concept of cross-subsidization and how EPC incentives can work together to minimize HUD recapture and maximize EPC project performance.