How Energy Service Companies Help Facility Planning 

By Dave Lubach, Contributing Editor 

Facility departments facing budget constraints and mounting deferred maintenance can turn to ESCOs — energy service companies — for a strategic alternative to traditional capital projects. Talking to Dave Lubach, executive editor for the facility market during a Show Central conversation at the recent NFMT and Clean Buildings conferences, Tim Unruh, executive director of the National Association of Energy Service Companies (NAESCO), explained how this contracting model can help public institutions tackle long-overdue upgrades without relying on new taxpayer dollars. 

An ESCO works with a facility to uncover energy and operational savings and then uses those savings to fund the project. The majority of the ESCO market is public sector work, including public schools, universities, hospitals, and government buildings.  

What sets ESCOs apart is their performance guarantee. The company commits to achieving a set level of energy savings. If they fall short, they make up the difference. Projects can include everything from LED lighting and HVAC modernization to renewable energy installations and building envelope improvements. 

However, these aren’t one-size-fits-all deals. Every ESCO agreement is tailored to a facility's specific goals.  

The key to success is selecting the right partner. Unruh recommended that districts not rely solely on price or referrals from nearby schools, but prioritize strong working relationships during the selection process.  

Listen to the full session to learn how to get started and why ESCOs could be a useful tool for long-term facilities planning. 

Dave Lubach is the Executive Editor of the facilities market, which includes Facility Maintenance Decisions, a sister publication to Facility Cleaning Decisions. 

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posted on 7/3/2025