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An ESCO (energy service company) is an energy-saving service company offering energy-related services to clients. ESCO projects are targeted at SME's and Corporates who seek to reduce their energy bills and conduct a carbon inventory on their CO2 emissions. ESCO Australia offer services that can guarantee energy efficiency performance and a reduction in energy bills. The basic concept of an ESCO is that the investment cost of providing the service, is paid for from the resulting savings in energy costs.

The ESCO model can be tailored as "guaranteed savings agreement" in which customers cover the business cost, and a "shared savings agreement" in which the ESCO business covers the business costs. These options enable service provision according to customer needs.