What is Performance Contracting?

Performance Contracting is a alternative method of financing energy and infrastructure improvements by leveraging future savings over time to pay for the financed cost of the project. This method has been prevalent for over 20 years.  A Performance Contract allows a higher education institution, such as IC, to partner with a qualified Energy Services Company (ESCO), such as Trane, to perform design/build/support services and implement capital improvements that result in reduced utility, operational and maintenance costs.  The ESCO assists with financing the program over a typical term of 15 years and payments are made annually with the savings that are achieved.  The ESCO guarantees enough savings to cover the principal and interest payments by paying any savings shortfalls.  Any savings beyond the guarantee are the client’s to keep and re-direct into other programs.

To learn more about Performance Contracting or the IC project, please contact Scott Hardwick, Comprehensive Solutions Manager with Trane, at sphardwick@trane.com or 636.305.3646.

Illinois College

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Jacksonville, Illinois 62650

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Fenton, MO 63026

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