Efficiency Services Agreement

The Efficiency Services Agreement (ESA) allows customers to implement a facility improvement project without any upfront capital expenditure. Through the ESA, Metrus pays for all development and construction costs. After a project is operational, the customer makes periodic service payments that are based on project performance.  These payments are designed to be less than or equal to the cost savings created by the project, allowing the customer to use an approved operating budget to fund facility improvements.

The Metrus ESA builds on the Power Purchase Agreement structure, which is used to finance private power and renewable energy projects. The ESA service payments are analogous to a customer’s existing utility bill – both are based on a measured quantity of energy units (kilowatt hours of electricity, therms of natural gas, etc). However, the ESA service payments are based on energy units that are saved, while a utility bill is based on energy units that are consumed.

During the term of the ESA, Metrus holds title to the project equipment and pays for associated maintenance services to ensure long-term reliability and performance. After the ESA term expires, the customer has the option to purchase the equipment at fair market value. The length of the ESA varies by project, but is typically five to ten years. In order to offer customers as competitive a service payment as possible, Metrus will monetize any available utility incentives or revenues associated with environmental attributes and demand reduction benefits generated by an EE project.