Current Size and Remaining Market Potential of the U.S. Energy Service Company Industry

TitleCurrent Size and Remaining Market Potential of the U.S. Energy Service Company Industry
Publication TypeReport
LBNL Report NumberLBNL-6300E
Year of Publication2013
AuthorsStuart, Elizabeth, Peter H. Larsen, Charles A. Goldman, and Donald Gilligan
Date Published08/2013
Keywordscommercial, electricity markets and policy group, energy analysis and environmental impacts department, energy efficiency, energy savings performance contract (espc), energy service company (esco), Government, industry size, Market Potential, Performance Contracting, Renewables

In this study, we analyze the market size, growth projections and industry trends in the U.S. ESCO industry, drawing on information from interviews with ESCO executives conducted in late 2012. We define ESCOs as energy service companies for whom performance-based contracting is a key business activity; 45 companies met our definition of an ESCO. We were able to interview 35 of these companies, which represents ~78% response rate. The non-respondent ESCOs were small companies in terms of revenue, representing about 2% of industry revenues.

We also provide a preliminary estimate of remaining ESCO market potential in terms of the one-time project investment potential and annual blended energy savings remaining in U.S. buildings typically addressed by ESCOs, based on market penetration estimates provided by ESCOs and industry experts. Finally, we report the range of impacts of the U.S. economic recession on ESCOs’ state and local institutional projects and their use of incentives, tax credits, and financing mechanisms.


An article related to this report was published in October 2014 in the journal Energy: A method to estimate the size and remaining market potential of the U.S. ESCO (energy service company) industry.

Report PDF1.47 MB
Presentation PDF1.11 MB