Model your project savings and peak-demand reduction
Calculate ROIZero upfront investment. Guaranteed energy savings. Trexon designs, finances, installs, and operates your complete solar and energy efficiency upgrade — and only gets paid from the savings we actually deliver.
An Energy Service Company (ESCO) is a company that provides energy efficiency and renewable energy solutions under a performance-based contract. The defining characteristic: the ESCO designs, finances, installs, and maintains the upgrades — and is paid exclusively from the actual energy cost savings the project delivers.
If the projected savings do not materialise, the ESCO absorbs the financial risk — not you. This performance guarantee structure fundamentally separates ESCO from a standard solar PPA or energy efficiency loan, where performance risk remains entirely with the building owner.
Critically, ESCO is also broader than solar alone. A Trexon ESCO project addresses the full energy consumption profile of your building — solar generation, LED lighting, HVAC optimisation, building energy management, and power factor correction — delivering total energy savings significantly larger than solar alone.
The ESCO contractually guarantees a minimum level of energy savings. If actual savings fall short, the ESCO compensates you — not the other way around.
All capital expenditure — solar panels, LED fixtures, HVAC equipment, controls — is funded by the ESCO. Zero upfront cost to the building owner or operator.
Unlike PPA (solar-only), ESCO includes LED lighting, HVAC, BEMS, and power factor correction for holistic energy savings of 30–50% of total energy costs.
During the contract term, savings are shared. After the term expires, the building owner retains 100% of all savings with fully owned, maintained equipment.
From energy audit to shared savings — Trexon handles every stage. You provide access; we deliver verified, guaranteed energy cost reductions.
Trexon conducts a comprehensive energy audit of your facility — mapping all consumption sources, identifying inefficiencies, and quantifying savings potential across solar, lighting, HVAC, and building systems.
We design a holistic energy upgrade package covering solar and efficiency measures. Trexon arranges 100% of the project financing — zero capital required from your side.
Trexon installs all systems and takes full responsibility for ongoing operation, maintenance, and performance monitoring across the contract term. You focus on your business.
Actual energy savings are verified and split — typically 70% to you, 30% to Trexon. After the contract ends, you keep 100% of all savings with fully owned equipment.
Savings are verified monthly. You benefit from day one of operation without having invested a single ringgit.
All equipment transfers to your ownership. You retain the full benefit of every kilowatt saved for the remaining asset life.
Under a guaranteed savings contract, Trexon makes up any shortfall. Your baseline energy cost is protected.
Three ways to finance solar in Malaysia — but only ESCO includes energy efficiency measures and a performance guarantee.
| Criteria | ESCO Model | Solar PPA | Green Loan |
|---|---|---|---|
| Upfront Cost | Zero — ESCO-financed | Zero — provider-financed | Loan amount as capex |
| Scope of Work | Solar + energy efficiency holistic | Solar generation only | Solar generation only |
| Savings Guarantee | Yes — contractual guarantee | No — tariff discount only | No — performance is yours |
| Performance Risk | ESCO absorbs shortfall risk | Shared (generation-dependent) | Fully on building owner |
| Equipment Ownership | ESCO during term, then owner | Provider-owned throughout | Owner from day one |
| Balance Sheet Impact | Off-balance-sheet | Off-balance-sheet | On-balance-sheet (debt) |
Key differentiator: ESCO includes energy efficiency measures beyond solar and provides a contractual savings guarantee.
A Trexon ESCO project addresses every major source of energy waste in your building — not just electricity generation, but consumption too.
Full solar installation sized to your roof area and consumption profile. Generation offsets purchased electricity directly, reducing TNB bills immediately.
Complete replacement of fluorescent and legacy lighting with high-efficiency LED across all zones — typically 50–70% lighting energy reduction.
Chiller performance tuning, AHU balancing, variable speed drives, and cooling tower upgrades. HVAC often represents 40–60% of building energy consumption.
Real-time BEMS monitoring and automated controls for HVAC, lighting, and equipment scheduling — enabling continuous optimisation beyond initial installation.
Capacitor banks to correct poor power factor — reduces TNB maximum demand charges and eliminates reactive power penalties on your monthly bill.
Full Scope 1 and Scope 2 emissions reporting from the BEMS platform — ready for ESG disclosures, Bursa sustainability reports, and CDP submissions.
ESCO works best in buildings with high energy consumption, constrained capital budgets, and strong potential for both solar generation and efficiency improvements.
High HVAC and lighting loads, 24/7 operations, and strong sustainability brand value make hotels ideal ESCO candidates. Typical savings: 25–40% of total energy bill.
Critical facilities with continuous high loads and strict operational requirements. ESCO's off-balance-sheet financing is ideal for healthcare capital allocation constraints.
Large campuses with diverse building types, constrained capital budgets, and strong sustainability reporting requirements to students, donors, and accreditors.
Public sector facilities where procurement rules favour ESCO models and energy efficiency is a national policy priority under Malaysia's National Energy Policy.
High energy consumers with centralised ownership and management. Lighting and HVAC retrofits deliver rapid, measurable savings across large GFA footprints.
Multi-tenanted or strata commercial buildings where landlords can benefit from ESCO savings without disrupting tenant occupancy or requiring tenant capex approvals.
Performance-based, zero capital, holistic energy savings — ESCO removes every barrier to energy transformation for Malaysian buildings.
Trexon finances 100% of all energy upgrades. No capital expenditure, no loan, no depreciation. Pure off-balance-sheet energy performance contracting.
Contractual savings guarantee — if actual performance falls short, Trexon makes up the difference. Your organisation bears zero performance risk.
Typically 70% savings to you, 30% to Trexon during the contract. After term ends, you keep 100% of savings with fully owned, maintained equipment.
Trexon handles all operations, maintenance, and performance monitoring. No internal energy management headcount required throughout the contract term.
Beyond solar — LED lighting, HVAC optimisation, BEMS, and power factor correction deliver larger total savings than solar alone, often 30–50% of energy spend.
Integrated Scope 1 and 2 emissions reporting from Day 1. Supports Bursa ESR, CDP, TCFD, and GreenRE/GBI certification uplift for your building.
Common questions from facility managers, CFOs, and sustainability leads evaluating the ESCO model.
An Energy Service Company (ESCO) designs, finances, installs, and operates energy-saving upgrades — including solar, LED lighting, HVAC optimisation, and building energy management — at no upfront cost to the building owner. The ESCO is paid entirely from the actual energy cost savings achieved. If the projected savings do not materialise, the ESCO absorbs the shortfall. This performance guarantee fundamentally differentiates ESCO from other solar or energy efficiency financing models.
The shared savings structure is negotiated on a project basis, but a typical arrangement is 70% to the building owner and 30% to the ESCO for the contract term (usually 5–10 years). After the contract term ends, the building owner retains 100% of all savings. Some ESCO arrangements use a "guaranteed savings" model instead — where the ESCO guarantees a minimum savings level and the building owner keeps everything above that threshold.
Unlike a standard solar PPA (which only addresses electricity generation), an ESCO project takes a holistic view of energy consumption. Typical measures include: rooftop solar installation, LED lighting retrofits across all zones, HVAC system optimisation and chiller replacement, building energy management systems (BEMS), power factor correction, variable speed drives on motors, and compressed air system upgrades. Trexon conducts a full energy audit to identify every savings opportunity before designing the project.
In a guaranteed savings ESCO model, the ESCO is contractually obligated to make up the shortfall — either through additional payments or further system improvements. In a shared savings model, if actual savings are lower, the ESCO simply receives less revenue. Either way, the building owner is protected: they only pay from actual savings realised. This risk transfer is the defining commercial advantage of the ESCO model over self-funded energy efficiency upgrades.
Typically, the ESCO (or an SPV set up by the ESCO) owns all installed equipment during the contract term. This means the capital expenditure does not appear on your balance sheet — it is off-balance-sheet financing. At the end of the ESCO contract, ownership of all equipment is typically transferred to the building owner at no additional cost, after which you enjoy 100% of all energy savings with fully owned, depreciated assets.
Yes — ESCO is particularly well-suited for government buildings, universities, hospitals, and public sector facilities where capital budgets are constrained but energy costs are high. Malaysia's Public Works Department (JKR) and Ministry of Energy have previously endorsed ESCO as a procurement model for public building energy efficiency under MECM guidelines. Trexon can structure ESCO arrangements compliant with government procurement guidelines.
Trexon's ESCO team will start with a free remote review of your energy data, identify savings opportunities across solar and efficiency, and propose a performance-guaranteed contract tailored to your building.
B2B enquiries only. Free remote initial energy-data review available for qualifying buildings.
Tell us about your facility and we'll design a zero-CAPEX ESCO performance contract.
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