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Performance Contracting Helps Achieve Energy-Saving Upgrades

John Poggi, account executive at Johnson Controls, describes performance contracting as “a funding mechanism that allows administrators to implement facility improvements without a capital expense.” Poggi explains how a performance contract is developed: The financial partner assesses the building, including infrastructure, systems and technologies already in place, and proposes a project that addresses the specific needs of the building. With it, organizations can conduct upgrades and pay for them through the resulting energy savings. If the estimated energy savings aren’t reached, the operator holds the financial responsibility. In addition to helping an organization’s bottom line, energy saving upgrades can also reduce emissions and increase sustainability. The Manassas City Public School District in Virginia put performance contracting in action for its 2018 upgrades. The district partnered with Johnson Controls to assess the facilities, come up with a project to address needed upgrades and determine a savings estimate.

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