ZEMCH 2015 - International Conference Proceedings | Page 664

Figure 10: The Energy Service Agreement (ESA) (Rockefeller 2012)
The ESCOs Financing
ESCO is a convenient way for project development and installation. Larger ESCOs are able to finance projects under energy savings performance contracts. These can undertake contracts of
“shared savings”, “paid from savings” or “guaranteed savings” (Fig.11). ESCOs can offer their services
without providing financing by using the PACE structure with the accessibility of PACE financial
support. ESCOs can undertake deeper retrofits with bigger savings and longer payback periods
by being attached to the property and not to the owner of the property (H2PC 2012).

Figure 11: The ESCO Financing Structure (Rockefeller 2012)
6.1 Financial Incentives Schemes
In Europe particularly in the UK, many incentive schemes have been proposed by the government:
Feed-in Tariff (FiT)
The FiT is an incentive payment for electricity that could be produced from clean energy sources
such as wind turbines as well as photovoltaic PV systems.
The Renewable Heat Incentive (RHI)
Similar to FiT, this incentive provides payments for heat that are produced from clean energy
sources, such as solar panels, geothermal, etc. Both the FiT and the RHI incentive tariff, which
support the implementation of the renewable energy technologies of low and zero carbon (LZC),
subsidize the local LZC heat or power production. A levy is imposed on all bills to support these

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ZEMCH 2015 | International Conference | Bari - Lecce, Italy