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I have heard that ESCos bring in money for Energy Efficiency improvement projects. Is this the only reason why we should contract with an ESCo?

April 26, 2017bring contract Energy efficiency ESCO escos heard improvement money Projects

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I have heard that ESCos bring in money for Energy Efficiency improvement projects. Is this the only reason why we should contract with an ESCo?

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Some ESCos do bring in money for implementing the projects developed by them. However, generally they do not. It is important to realise that an ESCo is not a Bank. Efficiency in project risk management requires that an agency that can best assume a risk be the one that bears that particular risk. Credit risk is best assumed by professional moneylenders such as banks. ESCos are usually not geared to assess or assume such risks. However, ESCos bring in a number of other benefits to their customers, which should motivate you to contract with one.