Energy Savings Guarantee

Because we know many energy efficiency projects fail to meet ROI, we ensure projects we implement do meet ROI by providing an Energy Savings Guarantee that the project payback will be no more than that agreed with the client (the “agreed payback”).

How it works
We will determine the agreed payback with you after we have completed the Baseline Survey and business case development for the project.

How we calculate it
To calculate the project payback, we will take the dollar value of energy savings from the implemented project, as confirmed in the post-implementation verification survey, and divide it by the capital costs of the project, less any income achieved from ESCs or VEECs or government grants.

       Project Payback = ((Capital cost of project) – (ESC or VEEC income))

                                     ($ value of energy savings achieved by the project)

  • Where capital cost includes Out Performers’ M&V and any other engineering fees applicable.
  • ESC revenue is the revenue achieved from the creation and sale of Energy Savings Certificates (or, in Victoria, VEECs: Victorian Energy Efficiency Certificates).


How the Energy Savings Guarantee is paid to you

If the project payback is more than the agreed payback, we will:

1. Rectifiy the Energy Conservation Measure to achieve the required energy savings, at our cost.

2. Where Step 1 is not possible, we will discount our fees until the required payback is achieved.

Only if the project payback is no more than the agreed payback will the full amount of our invoices be payable.