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Federal Energy and Water Efficiency Project Financing

The Federal Energy Management Program (FEMP) offers financing options for agencies that are ready to implement energy and water efficiency projects. Carefully matching available project financing options with specific situations can make the difference between a stalled, unfunded project and a successful project that generates energy and cost savings.

To find the right project financing option for you, start by reading the project financing quick guide, or choose an option below.

Learn about the Assisting Federal Facilities with Energy Conservation Technologies (AFFECT) funding opportunity.

Energy Savings Performance Contracts
Energy savings performance contracts (ESPCs) allow agencies to procure energy savings and facility improvements with no up-front capital costs or special appropriations from Congress. 

An energy savings performance contract is a partnership between a federal agency and an energy service company (ESCO). In an ESPC, the ESCO designs a project that meets the agency’s needs, arranges for funding, and guarantees the project will generate energy cost savings to pay for the project over the term of the ESPC (up to 25 years). Learn about ESPCs.

ESPC ENABLE offers a standardized, streamlined process for small federal facilities to install targeted energy conservation measures in six months or less.

ESPC ENABLE offers the same benefits as an ESPC but uses the GSA Schedule's prequalified vendors and prenegotiated pricing. Learn about ESPC ENABLE.

Utility Energy Services Contracts
Utility energy service contracts (UESCs) offer federal agencies an effective way to implement energy-efficiency, renewable-energy, and water-efficiency projects.

In a UESC, the utility provides the analysis, design, and installation and, when necessary, arranges for financing. Agencies may implement a UESC with no initial capital investment or may use appropriated funds strategically to maximize the impacts of their projects. Learn about UESCs.

Power Purchase AgreementsOn-site renewable power purchase agreements (PPAs) allow federal agencies to fund on-site renewable energy projects with no up-front capital costs.

In an on-site renewable PPA, a developer installs a renewable-energy system on agency property under an agreement that the agency will purchase the power generated by the system. Learn about PPAs.

incentives_us.jpgState Energy Incentive Programs

Most states offer energy incentive programs to help offset energy costs. Learn about energy incentive programs by state.