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Performance Contracting for Energy and Water Efficiency

Our performance contracting approach is comprehensive, identifying a variety of ways to achieve savings and operational efficiencies. You then select which ones best suit your organization based on your criteria such as payback or criticality. Johnson Controls will work with you to identify the types and amount of savings that can be guaranteed. 

Set goals and analyze buildings and infrastructure to establish the project.
Your facilities are audited. The detailed audit identifies opportunities to improve the energy efficiency of building envelopes (such as leaky windows, doors and wall seams), lighting, heating, air conditioning, ventilation systems and other systems. Or Johnson Controls can identify potential infrastructure improvements, such as water meter replacement or traffic light upgrades. A technical review confirms the ability to create benefits such as energy savings or improved accuracy. 

Develop an improvement plan based on projected energy and operational savings.
Following the technical review, a performance contract is drawn up. The contract specifies the scope of the energy efficiency improvements to be made, associated costs, estimated energy and other savings, grants available for project funding and the resulting cost savings. Some or all of these cost savings can be measured and guaranteed, depending on the situation. The savings are used to offset the cost of implementing the new, higher energy-efficient facility or infrastructure improvement measures, or even the construction of an on-site renewable energy project. In some cases, public sector organizations may be required to own new equipment and facilities, in which case a traditional loan or lease-to-own funding can be obtained from a financial institution. 

Implement and monitor initiatives to achieve savings
Using our own technicians and local subcontractors that meet our rigorous standards, Johnson Controls sets out to deliver the project’s objectives, following specific measures to achieve savings and providing a detailed payback analysis. A Performance Assurance Engineer is assigned direct responsibility for accountability to the customer and to provide effective communications. 

Measure, verify and report progress—making any adjustments necessary to meet the guarantee.
When the construction phase is completed, all new equipment must be properly operated and maintained over the course of the contract – which can run up to 20 years – to achieve the projected savings. Some projects may qualify for the Johnson Controls Facility Performance Indexing Service, an automated measurement and verification tool that provides real-time equipment monitoring and optimization. Periodic reports from the Johnson Controls Performance Assurance staff are furnished throughout the performance period to validate whether the project’s savings expectations are being met.

How Performance Contracting typically works:

How Performance Contracting typically works
FEATURED WHITE PAPER
American Recovery Reinvestment Act Stimulus White Paper Image
Learn how to stretch ARRA dollars with Performance Contracting.

Read Energy Performance Contracting Financing Options by CCI & ACUPCC

Read Innovative Financing Solutions: Finding Money for your Energy Efficiency Projects by Energy Star
ENERGY EFFICIENT RETROFITS
View our Brochure on Energy Efficiency Retrofits
Optimize & Modernize Your Facility
VIDEO
Wyandotte Public Schools Video Image Wyandotte Public Schools, Wyandotte, Michigan

District teamed with Johnson Controls for three performance contracts, which allowed the district to reduce operating costs and improve comfort, offset the costs of major building improvements with the energy and operational savings, and implement a solar energy system that doubles as a learning tool.
FEATURED CASE STUDY

City of Compton
Compton, California

Compton entered a project development agreement with Johnson controls to identify ways to use energy savings and revenue enhancement to make capital improvements. Phase One of the agreement consisted of a performance contract for energy-related improvements whose costs will be offset by energy savings.

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