Green business, green careers and job training
Solutions that build smart communities with green careers and sustainable businesses!

Save on Career Education through Lorman Education

Our readers are offered a discount on Lorman seminars and courses. Check out their business, management and legal offers at this link to qualify for our discounts. They also offer green business training opportunities. Please visit for a complete listing of courses. Register online or call Lorman at 866-352-9539.
Home > Feature Articles > Alternative Energy Solutions

Energy Savings Company Survey Shows Growth Opportunities, Again

Market data for energy service companies (ESCOs) indicate growth through 2009.

Find green business solutions
oil energy supply and alternative fuel A 2007 survey of the U.S. energy service company (ESCO) industry shows renewed growth for these energy conservation service providers.

The U.S. energy services company (ESCO) industry has long been recognized for its role in delivering energy efficiency and related energy services to customers with large and medium-sized facilities. Recently, utilities, their customers, and state, local, and federal governments have developed renewed interest in energy efficiency to address concerns about:

  • rising fuel and electricity prices,
  • climate change,
  • increasing cost estimates of building new baseload generation,
  • and challenges in siting new power plants and major transmission facilities.

Energy efficiency accounted for almost three quarters of industry revenues, or about $2.5 billion. Customer-sited generation, including renewables, is a growth area for ESCOs (16% of revenues in 2006), with consulting/master planning and other services making up the balance of revenues (11%).

Average annual growth between 2000 and 2004 was only 3%, down from 20% in the 1990s. We attribute this to stalled retail competition, fallout from the Enron bankruptcy, a sunset in the legislation that enables performance contracting in the federal market, and industry consolidation.

Survey results indicate a recovery in 2004–06, with growth again reaching 20% per year. Factors contributing to recent increases in ESCO activity include:

  • customer response to rising energy prices,
  • renewed interest in energy efficiency and climate change,
  • re-authorization of energy savings performance contracts (ESPC) in the federal market,
  • the adoption of aggressive energy savings goals for federal agencies,
  • and the ramping up of public-benefit- and ratepayer-funded energy efficiency and renewable energy programs.

ESCOs project continued growth, at similar rates, for the next two years. The composition of the ESCO industry continues to evolve with significant industry consolidation since 2000; however, a significant number of small, independent ESCOs are still active in local and regional markets.

In 2006, over 80% of ESCO industry investment was among institutional customer facilities: 22% in the federal market, 58% in state/local government, universities, schools and hospitals markets, and 2% among public housing authorities (see Figure ES-2). Private sector investment is split between commercial (9%), industrial (6%) and residential (3%) facilities.

ESCOs can complement and support ratepayer-funded energy efficiency programs in the market sectors where they are active. For example, they can:

  • develop comprehensive projects
  • arrange financing for customers who have difficulties obtaining funding for energy-related capital projects
  • manage performance risks as part of measuring and verifying savings

    The core market in which the ESCO business model has been most successful is in energy-efficiency retrofits to large buildings, primarily owned by institutional clients.


    Edited by Carolyn Allen, owner/editor of California Green Solutions
    Green Solution Providers
    Green companies directory
    your green solutions - business, nonprofit, government program.
    It's free.
    | ESCOs | energy conservation | energy service company | energy efficiency |

  • Share in Social Media

    Sign Up For News & Information
    Subscribe to our free solutions newsletter
    "Ten+ Tips for Greening Your Office"

    Read prior issues: California GreenLines

    Search For Green Solutions

    Custom Search
    Green Career Center
    Green Job Wizard
    Career Certifications Directory

    green job training certifications
    Green Biz Center
    Solutions For Green
    Directory of Green Companies

    Solutions for Alternative Energy

    rose in natural systems
    Green Living Center
    Solutions for Green: Consumers

    Solutions for Remodeling

    Backyard Nature Center


    "Knowing is not enough; we must apply. Willing is not enough; we must do." Goethe

    Related Articles

    Reinventing Fire to Change the Rules of the Energy Game

    Recurve Provides Energy Savings with Home Performance Audits and Remodeling

    You Can Help Kick HOME STAR Into Gear!

    Related Green Resources

    Marcom Tips
    Interactive & Video Tips

    Career Resources

    We encourage lifelong learning to support sustainable communities and provide these select resources to help you pursue green and sustainable self-development:

    Lorman Business Training Directory of On-line Business and Compliance Classes

    Green Job Wizard Job and Career Certifications Directory

    Job & Career Resources

    Sales & Marketing
    Human Resources

    Green Economy

    Business Sectors
    Natural Resources

    Solutions For Green

    About Us ~ Privacy Policy
    Contact Us ~ Home

    Text Link Ads

    AD: Place your link here


    We help you green your career, workplace and community by connecting you to quality green, sustainable and high performance resources. California Green Solutions focuses attention on effective solutions that sustain our natural systems. You can support our editorial work by supporting our advertisers and spreading the word about best practices and green solutions.
    California Green Solutions is a publication of Carolyn Allen ~ Copyright ©2006-2030 Carolyn Allen

    B2B | Job Certifications | Alternative Energy | Events | Green Directory | LED Lights | Remodeling |
    CONSUMERS | Backyard Nature | Senior Health | MultiMedia Marketing | Marketing | Networking Events | Japan |