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How Does Energy-As-A-Service Work?


IonicBlue Posted by: IonicBlue 1 year ago

At IonicBlue, we help our customers pursue comprehensive energy efficiency solutions that save money, improve infrastructure, and significantly advance sustainability goals. We provide performance guarantees, handle all operations, maintenance, and lifecycle services, and eliminate all risks typically associated with capital equipment purchases and installations. It’s a risk-free relationship that we know sounds too good to be true. But not only is it true, EaaS is also the future.

The Energy-as-a-Service model (EaaS) has exponentially increased in popularity over the last two decades, and now it’s just one of many “as a service” options available in the marketplace – but the only one truly tailored for commercial and industrial customers. Even so, there’s a bit of mystery about how energy-as-a-service works. 

In this article, we’ll break down the step-by-step process of partnering with an energy-as-a-service provider. After reading what it’s all about, let us know if you want to talk about upgrading your infrastructure, increasing energy savings, and de-risking the whole process!  

Step 1: Sign Up

“Energy company” and “energy efficiency savings” are not words that typically live in the same sentence. By signing up for an Energy-as-a-Service program, though, you reduce energy expenses while simultaneously upgrading your infrastructure, and can subsequently move CAPEX to OPEX – an excellent perk of the overall win-win situation.

To sign up, engage with us and start a discussion around your company’s short- and long-term cash flow, efficiency, and sustainability goals. From there, we’ll work with you to schedule a site visit and develop a preliminary business case detailing the recommended solutions and financial model. You’ll be well on your way to reducing your carbon footprint while cost-effectively meeting your energy needs. 

Step 2: Energy Audit

Once the preliminary business case is approved, your dedicated Energy Specialists will get to work on conducting a comprehensive energy audit. This involves close examination of every point of energy consumption and management to see where energy is being used efficiently and where it’s being wasted. The result will be a full energy profile that will include an analysis of all HVAC systems, lighting, electrical and mechanical systems, appliances and equipment, the building envelope, water usage, renewable energy options, and other infrastructure needs.

Heating, Ventilation & Air Conditioning (HVAC) Systems

HVAC systems are frequently at the root of high energy bills. The audit process will include scrutinization of the systems represented across your commercial or industrial buildings and campus to identify the best options to optimize your energy efficiency.


Your team of Specialists will evaluate internal and external lighting systems, levels, and patterns to ascertain opportunities for improved efficiency without compromising employee needs and comfort.

Electrical & Mechanical Systems

A thorough analysis of electrical and mechanical systems will identify where energy is being wasted, showcase how systems may be affecting employee health and safety, and study efficiency across system components.

Appliances & Equipment

Appliances and equipment, big and small, can use a great deal of energy. Your energy audit will include a thorough evaluation of everything from your fridges and servers to manufacturing equipment.

Building Envelope

Windows, walls, insulation, roofing – they all impact your level of efficiency. An audit will reveal the benefit of minor as well as potentially major adjustments that will reduce heat/cool loss or gain.

Water Usage

Some companies use an enormous amount of water by industry default and their water usage results don’t come as a surprise. But some companies are using a lot more water than is necessary! In both cases, an energy audit will reveal the value of water conservation strategies.

Renewable Energy Options

Your EaaS team will simultaneously conduct a feasibility study concerning renewable energy vehicles that may be of interest, such as solar panels, wind turbines, geothermal heating and cooling systems, a microgrid, and other renewable energy systems.

Step 3: Energy Plan

This is when the fun begins. Following the audit, you’ll meet with your EaaS team to glean the complete picture of your current efficiencies and inefficiencies and co-construct an energy plan that will meet your company’s specific needs and usage patterns. Many of the proposed solutions are likely ones you’ve heard of or even considered, and others may include unknown upgrades, innovations, and new technologies. Let the experts help you plan for success!

Step 4: Financing Options

Energy-as-a-Service providers incur all of the upfront costs required to execute your tailor-made energy plan. Throughout your partnership, your company will see:

  • Guaranteed energy savings
  • The freedom to refocus CAPEX on your core business
  • Increase in EBITDA and valuation
  • Advancement of corporate sustainability goals
  • Reduction in carbon footprint
  • Fixed monthly energy bill
  • New infrastructure
  • Enhanced building automation
  • Incorporation of renewable energy
  • And many other benefits

At IonicBlue, we pride ourselves on offering alternative financing solutions that are tailored to the needs of each customer. Our team of “financial engineers” works side-by-side with you in full transparency so you understand all of the benefits, payments, and terms of the contract. At the end of your contract you can extend the agreement, take ownership of or purchase the equipment or, if applicable, return the equipment. 

Step 5: Plan Execution

The next phase is execution. Collectively with our partner, Johnson Controls, we conduct all research, design, scope vetting, selection, purchasing, installation, and commissioning. We eliminate the hard work while you sit back and watch your facility or campus undergo upgrades that vary in scope and scale – from minor retrofits to complete redesign.

Step 6: Evaluation & Optimization

Your EaaS partner will then initiate ongoing O&M, energy monitoring, lifecycle management, and measurement and verification, including:

  • Confirmation of facility-wide performance guarantees
  • Real-time energy usage tracking
  • Energy management and storage
  • Demand response
  • Predictive maintenance and repair
  • Incentive, rebate, recycling, and warranty management
  • Energy efficiency verification goals

As opportunities present, your energy plan will be refined for further optimization, decreasing your energy output and increasing your savings.  
Ready to see if Energy as a Service is a good fit for your company? Connect with the IonicBlue team to get the conversation started!