Renewable Energy Service Contract

Renewable Energy Service Contract: An Overview

The world is gradually shifting away from traditional sources of energy towards renewable energy sources, such as solar, wind, hydro and geothermal energy. Renewable energy is expected to play a major role in meeting the energy demands of the future, and numerous businesses are already adopting this change. However, investing in renewable energy can be tough for many businesses that lack the financial resources or expertise required to purchase and maintain renewable energy systems. That is where renewable energy service contracts come in handy.

What is a Renewable Energy Service Contract?

A renewable energy service contract (RESC) is a legal agreement between a renewable energy provider and a client, in which the provider agrees to supply, install and maintain a renewable energy system for the client for a specified period of time. The provider is responsible for the design, installation, and maintenance of the system, while the client pays a monthly or yearly fee for the energy produced. This way, the client gets the benefits of renewable energy without having to worry about the upfront costs and maintenance issues.

Types of Renewable Energy Service Contracts (RESCs)

There are different types of renewable energy service contracts, and they vary depending on the terms and conditions. Here are some of the most common types:

1. Power Purchase Agreement (PPA) – In a PPA, the energy provider installs and owns the renewable energy system and sells the energy produced to the client at a fixed rate for a specified period of time.

2. Energy Services Agreement (ESA) – In an ESA, the energy provider installs and maintains the renewable energy system, and the client pays a fixed fee for the energy produced.

3. Operations and Maintenance Agreement (OMA) – In an OMA, the energy provider is responsible for maintaining and repairing the renewable energy system for a specified period of time.

Benefits of Renewable Energy Service Contracts

1. Cost Savings – Renewable energy service contracts can help businesses save money on energy costs. Since the energy provider owns and maintains the system, clients can avoid the upfront costs of purchasing and installing a renewable energy system.

2. Reduced Carbon Footprint – Businesses that use renewable energy reduce their carbon footprint, which is good for the environment and helps meet sustainability goals.

3. Predictable Costs – With a RESC, clients can have predictable energy costs. Since the pricing structure is agreed upon in the contract, clients can budget their energy costs more effectively.

4. Little to No Maintenance – Since the energy provider is responsible for maintaining the system, clients can focus on their core business activities rather than worrying about maintaining a renewable energy system.


Renewable energy service contracts are a great way for businesses to transition to renewable energy. By working with a reputable energy provider, businesses can enjoy the benefits of renewable energy without worrying about the upfront costs or maintenance issues. If you are considering transitioning to renewable energy, a renewable energy service contract may be the perfect solution for your business.