ESCO (energy service company model)

ESCO (energy service company) is a model in which a third party finances, builds and operates a plant at the customer's site. The customer invests nothing upfront and pays for delivered energy or achieved savings over the contract term.

In the Enedeal calculator ESCO is one of four financing models, next to cash, leasing and project finance. It shows that zero upfront capital does not always mean the best long-term outcome for the owner.