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Guaranteed Energy Savings Contract (GESC)
GESC Background
A Guaranteed Energy Savings Contract (GESC) is an agreement between a qualified provider and a building owner to reduce the energy and operating costs of a building, or a group of buildings, by a specified amount. Indiana Code 36-1-12.5 stipulates which governing bodies are able to enter into a Guaranteed Energy Savings Contract. This list is exclusive to what is defined by IC 36-1-12.5: schools, libraries, municipal water or wastewater utilities operated by a political subdivision, and other governing bodies.
As schools and other governing bodies consider building new, or improving existing facilities, making energy efficiency a central part of the planning process has become more important than ever as energy costs rise and budgets decline. By utilizing GESCs, schools and governing bodies in Indiana can benefit from the economic and performance benefits from increasing energy efficiency. The main advantage of these agreements is that the building owner can participate in the project without a large upfront investment of capital. The savings are used to pay for the investment over a period of 15 years. If the guaranteed savings are not achieved, the provider must reimburse the building owner for the difference between the guaranteed and cost savings.
To find a qualified GESC provider near you, click here.
Become a Qualified Provider
To become a qualified provider, a vendor must take certain steps before being able to enter into a Guaranteed Savings Contract. First, a vendor must be registered with the Secretary of State of Indiana. For information about how to register, please visit this site.
Public Works--Contractor/Subcontractor
A contractor or subcontractor must also be listed as a qualified provider with the Indiana Department of Administration. Information about this process may be found here.
Public Works--Designers and Planners
Designers and planners for public works must also be prequalified with the Indiana Department of Administration. Information about this process may be found here.
After these steps are completed, the vendor will need to contact OED to obtain a form to complete to be listed as a qualified provider specifically for the Office of Energy Development. Please contact OED at (317) 232-8939 or email Megan Ottesen at mottesen@oed.in.gov for more information.
