NEW YORK – A variant to the ESCO model is a
long-term agreement under which an energy efficiency
supplier takes over a property's energy management
and utility bills. Such contracts have been long used
in Europe, but are just being introduced in the U.S. — one
company that supplies them is Transcend Equity
Development Corp. At the end of the contract, the building owner
owns the energy efficiency equipment placed in the
property and inherits substantially reduced energy
bills. A plus under this method: The property owner
owns the energy savings equipment outright at the close
of the contract term.
