Leasing & Finance

Leasing & Finance

ESCO service

Overview

ESCO stands for "energy service company" and refers to conducting "energy conservation" as a private business activity to provide customers with comprehensive energy related services.

Business model

(1) Conclude an ESCO service contract between the customer (user) and the ESCO company. (2) Conclude a lease contract between the ESCO operator and NTT TC Leasing (3) Provision of ESCO service from ESCO operators to customers (users). ④ Payment of service charge from the customer (user) to the ESCO company. ⑤ Payment of leasing fee from ESCO operator to NTT TC Leasing (1) Conclude an ESCO service contract between the customer (user) and the ESCO company. (2) Conclude a lease contract between the ESCO operator and NTT TC Leasing (3) Provision of ESCO service from ESCO operators to customers (users). ④ Payment of service charge from the customer (user) to the ESCO company. ⑤ Payment of leasing fee from ESCO operator to NTT TC Leasing

Benefits for customers

  • Reductions in energy consumption are guaranteed, for a surefire way to conserve energy. 
  • All costs associated with the repair work to save energy will be covered by the cost reductions achieved post-implementation, so no new costs are involved. (*1)
  • We provide comprehensive services related to energy conservation.
  • Off-balance sheet financing can be used for energy-saving equipment. (*2)
ESCO service flow. After the preliminary diagnosis is proposed, the detailed energy diagnosis and the implementation plan are proposed. After that, we will collectively contract for ESCO service contract, repair work, verification of reduction fee, maintenance and inspection as operation management of equipment.
I will explain the expenses and profit distribution of ESCO service. After implementation of ESCO service, expenditure on utility heat and water decreased compared to before implementation of ESCO service. From the energy saving effect guaranteed by the ESCO company, service fees will be paid and customer profits will be shared. In addition, since the extended service fee after the contract expires will be lower than the original service fee, the customer's profit distribution will increase. I will explain the expenses and profit distribution of ESCO service. After implementation of ESCO service, expenditure on utility heat and water decreased compared to before implementation of ESCO service. From the energy saving effect guaranteed by the ESCO company, service fees will be paid and customer profits will be shared. In addition, since the extended service fee after the contract expires will be lower than the original service fee, the customer's profit distribution will increase.

Important notes

*1: If all of the costs associated with the repair work to save energy are not covered by the reduction in expenses, the customer may need to cover any remaining costs. 
 *2: Customers are advised to check with their auditors in advance, as the customer will be responsible for making any decisions related to off-balance sheet financing.

For first-time customers: Leasing services at NTT TC Leasing
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