Experience of Factor4 revealed that once SME’s got to know the EPC concept, they were mostly open to cooperate in the pre-feasibility fase in order to receive an EPC offer. However, there’s no offer in EPC services that meets SME’s needs.

SME’s prefer short, not too complex contracts, keeping control and freedom, and aren’t able and/or willing to spend too much time to tasks that aren’t directly related to their core business. Factor4 developed a new EPC relighting contract that doesn’t only answer these SME concerns, but also guarantees quality and lighting levels because inferior LED-lighting has created a bad and even investment blocking reputation.

Initially Factor4 wanted to create a model contract which could be used without the help of a facilitator, to limit the transaction costs and treshold to start EPC. After all, lighting is the easiest technique in the EPC business, is what most stakeholders assume. It appears to be far from easy, if you want to meet all concerns, and include the necessary guarantees in energy consumption and quality. That’s why three relighting installers are being trained by assisting them to realize their first projects using the contract. Signings are expected before the end of the year.

The contract uses the latest European wide insights and developments, like ‘Simple M&V’ developed in IEA DSM Task XVI, and a guarantee on the new energy consumption instead of the energy savings to limit M&V costs, and avoid favoring and uncertain baseline assumptions. It’s the first EPC contract that ends immediately after installation with a detailed handover procedure.