In today’s world, people typically subscribe to about four monthly media services for their homes. What if this opt-in mentality took root in business too? Rewind 10 years and that seems like a dead-end question; not anymore. Today, you can even subscribe to your energy service.
Energy as a Service – or EaaS – may not exactly roll off the tongue because it’s a relatively new offering to corporate consumers, but it is very much a service you can opt-in to now! Companies like IonicBlue are revolutionizing how organizations can increase their energy efficiency and have greater energy savings while helping to create a more sustainable future through the EaaS model.
In this article, we’ll present an overview of the Energy-as-a-Service market.
What is the Energy-as-a-Service Model?
EaaS gives consumers access to energy management services while eliminating common barriers to greenlighting a comprehensive efficiency plan. Let’s jump into an Energy-as-a-Service example:
A traditional energy company charges customers monthly for energy usage. That’s typically the extent of the relationship; it’s one-way and transaction-based. There is no opportunity for consultancy, system installation, monitoring software, maintenance, etc. So, if a customer wants to make changes to their energy consumption, such as by installing solar panels, they would have to independently conduct research, develop a plan, supply the upfront capital, pay for system installation, and be prepared for ongoing maintenance.
And this is all while paying their monthly energy bill, which could vary drastically month-to-month!
The amount of time, effort, and resources – and the uncertainty as to the effectiveness of any of it in the long run – is enough to prevent many businesses from making sustainable changes. The environmental benefit is a sure bet, but the return on financial investment is nebulous. This is where EaaS comes in …
The EaaS model shifts upfront capital expenses to a “pay as you go” service expense. Consumers have access to energy management services without the upfront costs, making it far easier to achieve the desired energy savings and sustainability goals.
Unlike the traditional energy model, EaaS is a two-way relationship that’s collaboration based.
Let’s take a deeper dive into the advantages of Energy as a Service.
No Upfront Capital
EaaS providers cover the initial costs of implementing the energy solutions a business owner plans to pursue. These costs could range from project management and facility audits to technology installation and monitoring software. From that point onward, the business would have a contract with a fixed monthly subscription – a predictable operating expense – that would continue to cover monthly expenses such as maintenance.
Savings and Risk Management
The EaaS model gives businesses the ability to improve sustainability and achieve their energy-saving goals while lowering risk. To do this, EaaS professionals work with the business owner to analyze energy usage and goals to develop an action plan. This plan could include anything from updating equipment to finding alternative ways to produce and store energy. The aim is to provide not only energy savings but also capital savings and cash flow improvements.
For a business to undertake a project of this scope without an EaaS provider, they must assume several risks, including shouldering responsibility for:
Goal setting and advisory services
Safe, secure, healthy environments
Distributed energy resources
Renewable energy supply services
Certify and recognize impact
With EaaS, the owner risks are limited to the monthly service payment and energy commodity cost. The Energy-as-a-Service provider takes responsibility for all other facets of the project for the duration of the contract.
A major goal of both EaaS providers and Energy-as-a-Service consumers is decarbonization and sustainability. Modern technology has made responsible environmental sustainability solutions available and now – with the elimination of planning, implementation, and maintenance barriers – they are accessible.
Take the Next Step
The future of energy is here; there’s no need to settle for the way energy worked in the past. The time to explore your options is now – and the IonicBlue team stands ready to help you get started.
Here’s our process:
Engage Our Experts
Meet with our team to discuss your decarbonization and sustainability goals.
Together, we will identify and define the energy conservation measures and facility improvements to help you achieve these goals.
We’ll present financing options tailored to your financial position.
Energy services agreement in hand, we’ll kick off project design and installation – and you’ll begin to save!
Savings and sustainability are within your reach! Connect with us to see if EaaS is right for your company – we’re here to help!