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Department of Local Government Finance

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DLGF > Gateway > Guaranteed Energy Savings Contract (GESC) 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 GESC. 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 facilities 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 not to exceed the lesser of 20 years or the payback period of the project. If the guaranteed savings are not achieved, the provider must reimburse the building owner for the difference between the guaranteed savings and actual cost savings.

To find a qualified GESC provider, click here. (updated 2/23/17)

Annual GESC Reporting Requirements

A governing body participating in a GESC is required by IC 36-1-12.5 to provide a copy of the executed guaranteed energy savings contract, pre-project energy costs and billable revenues, and documentation of stipulated savings and related capital expenditures to the Department of Local Government Finance (DLGF) not more than sixty (60) days after the date of execution of the contract. The governing body must also report the savings resulting from the contract annually to the DLGF for the life of the contract, which can be and is accomplished by submitting a completed Annual Savings Report. This can be done by e-mail or mail. The report is to be e-mailed or mailed to the DLGF no later than sixty (60) days after the end of each year the savings guarantee is in force.

Become a Qualified Provider

Becoming a GESC provider is a three-step process.

1. First, a vendor must be registered with the Secretary of State of Indiana to do business with the state. For information about how to register, please visit this site. DLGF is not involved in the process.

2. Second, a vendor must be certified by the state Public Works Certification Board as both a Contractor and Designer. Information about this process may be found here. DLGF is not involved in this process.

3. After the first two steps are completed, the vendor must submit an application to be listed by DLGF as a qualified GESC provider. For more information, please email the DLGF at gesc_reports@dlgf.in.gov.