In case when the user tries to compensate the existing energy facility to save energy, yet fails to execute the business due to technical and economic burdens, ESCO offers the technology and funding. ESCO collects its investment back from the energy cost savings from the invested facility.
ESCO Advantages (As of 2009)
1) Supporting Range
- Within the 80% of required funds (100% for small businesses, non-profit corporation and public institution)
2) Limit of support
- Up to 135 Billion Won annually / Up to 27 Billion Won per same business owner / Up to 15 billion Won per same investor
3) Repayment Condition
- Repayment in two years with a three-year grace period (electric installation)
- Repayment in seven years with a three-year grace period (heat installation)
4) ESCO investment interest rate
- General variable interest rate : 2.5% (Quarterly fluctuation)
- General fixed interest rate : 3% (No quarterly fluctuation)
5) Funding targets
- Condition: ESCO having signed the outcome-distribution contract, if the user, who signed the outcome-guarantee contract with ESCO wants to have following businesses(facilities):
- Group energy, voluntary corporate investment agreement, energy-saving facility installation, industry/building cogeneration development, manufacturing facilities such as high efficiency products and etc., local energy development, small start-up assistance, demand management investment, renewable energy dissemination.
- New facilities are not eligible from ESCO’s investment program.