Guaranteed Energy Savings & Performance Contracting in Louisville, KY
Hadley Energy Solutions offers guaranteed energy savings contracts and ESCO performance contracting for commercial, institutional, and municipal facilities throughout Louisville, KY. This financing model lets you upgrade your lighting, HVAC, controls, and building envelope with no money out of pocket — the energy savings pay for the improvements. If the guaranteed savings aren't achieved, we pay the difference. Zero risk, guaranteed results. Performance contracting is specifically authorized for Kentucky schools and government agencies under KRS 56.770-56.784.
Guaranteed Savings
Performance-based contracts with guaranteed ROI.
No Upfront Cost
Savings pay for the improvements over time.
M&V Tracking
Measurement & verification of actual savings.
Who Benefits from Performance Contracting?
Schools and universities with tight capital budgets, K-12 school districts with deferred maintenance and aging buildings, municipal and county governments with budget constraints, hospitals and healthcare facilities with 24/7 energy demands, large commercial and industrial buildings with aging HVAC and lighting, any organization that needs energy improvements but lacks capital budget, and facilities where decision-makers need guaranteed ROI to justify investment.
ESCO Services
- Comprehensive facility assessment
- Investment-grade energy audit
- Engineering design for energy conservation measures
- Project financing (no capital outlay required)
- Guaranteed energy savings (contractually committed)
- Professional installation of all improvements
- Construction management and commissioning
- Measurement and verification (M&V) of savings
- Ongoing maintenance during contract term
- Training for facility staff
- Annual savings reconciliation reporting
- Risk transfer — if savings fall short, we pay the difference
How Performance Contracting Works
Preliminary Assessment & Audit
We assess your facility to determine viability, then perform an investment-grade energy audit that identifies all energy conservation measures and calculates guaranteed savings using IPMVP protocols.
Contract & Financing
We enter a performance contract that guarantees specific energy savings. The project is financed so monthly payments are less than monthly energy savings — positive cash flow from day one.
Implementation
We design and install all improvements: LED lighting, HVAC upgrades, controls, building envelope improvements, and other energy conservation measures.
Measurement & Verification
We measure actual energy savings annually and reconcile against guarantees. If savings fall short, we pay the difference. Your energy savings are contractually guaranteed.
Performance Contracting Financials
The ESCO model eliminates the biggest barrier to energy improvements — upfront cost:
- No upfront capital required — improvements are financed
- Monthly payments < monthly energy savings = positive cash flow
- Contract terms typically 7-15 years depending on scope
- After contract ends, 100% of savings go to your bottom line
- Guaranteed savings eliminate financial risk
- Typical project sizes: $200,000-$10,000,000+
- Ideal for facilities with $50,000+ annual energy costs
Guaranteed Energy Savings & Performance Contracting (ESCO) FAQs
How can you guarantee energy savings?
We guarantee savings based on detailed engineering calculations and measurement protocols (IPMVP). The guarantee is contractual — if savings don't meet the guaranteed amount, we write you a check for the difference. We've never had to pay on a guarantee because we're conservative in our projections.
Is this too good to be true?
No. Performance contracting has been used by schools, municipalities, and federal agencies for decades. It works because energy improvements genuinely save money — we just structure the financing so savings pay for improvements. The U.S. Department of Energy endorses this model.
What kinds of improvements are included?
Typically: LED lighting, HVAC upgrades and replacements, building automation systems, building envelope improvements (insulation, air sealing, windows), water conservation measures, and renewable energy where applicable.
Who qualifies for performance contracting?
Performance contracting works best for facilities with $50,000+ in annual energy costs. Schools, municipalities, hospitals, and large commercial buildings are ideal candidates. KRS 56.770-56.784 specifically authorizes performance contracting for Kentucky schools and government agencies.
How is this different from a loan?
With a loan, you take on debt and hope the savings materialize. With performance contracting, the savings are contractually guaranteed. If we fall short, we pay the difference. You never pay more than you save.
Is this available for school districts?
Yes. Performance contracting is very common for K-12 school districts in Kentucky. It allows districts to address deferred maintenance and upgrade aging buildings without tax increases or bond issues.
Why Choose Hadley Energy Solutions?
We make energy improvements risk-free. The guaranteed savings model removes the two biggest barriers: upfront cost and uncertainty about results. Schools, cities, and hospitals shouldn't have to choose between fixing the roof and upgrading the HVAC. Performance contracting lets you do both — funded by energy savings that we guarantee. After the contract ends, the savings are all yours.
Explore Our Full Capabilities
As a dual-licensed electrical and HVAC contractor, Hadley Energy Solutions offers a complete range of services under one roof.
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Service Areas
We provide guaranteed energy savings & performance contracting (esco) throughout Kentucky and Southern Indiana.
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