The widespread view of energy as a fixed cost has endured in society for many years. This misconception makes it challenging for consumers to explore the numerous sources and types of energy available — even when they know energy savings are possible. When companies search for new energy-saving technology, the most significant impact can come from changing the way you view energy spending.
Many companies are finding new ways to optimize operations and increase energy efficiency with energy as a service (EaaS). Learn how you can benefit from switching to the EaaS model today, and leave traditional capital purchases in the past.
How Energy as a Service Works
Energy as a service business models allow customers to pay for an energy service without any upfront capital investment. EaaS, sometimes called power as a service, is a solution to expand market adoption of advanced, low-carbon technologies. EaaS providers are responsible for maintaining and monitoring the energy supply, lowering the customers’ operating costs and improving profitability.
This emerging business model of energy revolves around partnerships with outside experts to regain your company’s control over a high-spend business area. Instead of procuring a budget request for a finance or lease agreement, EaaS is a service contract with a fixed monthly subscription and operating expense. You no longer need to recapture the asset through depreciation or list debt on the books.
Energy as a service allows you to make energy-efficient upgrades without the traditional financial hurdles blocking your progress. Your EaaS provider will cover it all with no upfront costs — from complete project management, auditing your facility, recycling old materials, handling any rebates or incentives from your utility provider and ongoing maintenance of selected products.
The Energy as a Service Business Model
When creating their EaaS business model, many companies can produce energy savings by considering how energy as a service works in other commercial and industrial sectors.
Service-based business models typically involve a subscription where the customer pays a recurring fee to gain a product’s benefits without directly purchasing or managing its use. EaaS describes any business models related to energy services, including lighting and renewable resources. For example, an EaaS company can help customers avoid direct electricity payments, device management and expensive upgrades while still using electricity in their business.
An EaaS provider will recommend ways to save money on energy — either by improving the energy efficiency of current operations or advising alternative methods to procure, produce and store energy. When you partner with an EaaS company, its expertise in all aspects of the industry becomes your own. Additionally, the EaaS partnership guarantees savings for the customer. If the recommended alterations fail to produce the expected savings, the EaaS provider will reconcile the difference.
Pros and Cons of EaaS Models
The energy as a service model can make advanced technology more accessible to customers who lack the direct knowledge or means necessary. Many large commercial customers have already used EaaS models to lower operation costs, improve sustainability or achieve other energy-saving goals. The commercial and industrial revenue from EaaS is expected to expand, with the global market from lighting as a service alone estimated to reach $2.6 billion by 2026.
EaaS models have already succeeded in many large industries and institutions like:
- Manufacturing plants
- Schools and universities
- Health care facilities
- Municipal buildings
- Aerospace facilities
Certain limitations prevent the residential sector from achieving the same EaaS growth as commercial and industrial businesses. EaaS business models can succeed in residential sectors, though more risks are involved when providers sell energy services to homeowners. Due to these risks, residential EaaS models have not successfully grown to offer the same opportunities for implementation.
How Does EaaS Produce Energy Savings?
An energy as a service company will determine different ways your business can save energy. An EaaS energy provider will make two types of savings recommendations:
- Energy-efficient improvements for daily operations.
- Alternative ways to procure, produce and store energy.
Critical equipment like HVAC units, compressors, air blowers, elevator motors, pumps and other specialized machinery can significantly increase energy costs. Your EaaS partner will analyze your building’s energy profile and monitor each piece of equipment’s power usage patterns. With this information, they can devise strategies for controlling and optimizing energy based on the critical equipment you use daily.
Benefits of energy as a service include:
- Advanced technology: Gain access to advanced machine learning applications that tailor recommendations specifically for your building and increase the accuracy of savings opportunities.
- Energy expertise: Work with data and insights from professionals in the field to confidently improve daily operations and compare different energy production options.
- Detailed insights: Learn how much energy each piece of equipment uses, the most frequent periods of use, environmental factors that affect energy usage and the exact savings you’ll receive by implementing various changes.
- Ongoing savings: Take advantage of the technology long-term for continued energy savings, even after following the initial recommendations.
EaaS companies also analyze your current energy supply and assess alternative methods to purchase, produce or store the energy you use. EaaS providers introduce you to emerging energy production options and energy storage technologies so you find a less expensive or more sustainable energy supply.
The Future of EaaS: Partner With RateAcuity Today
Since the EaaS model’s inception, many service companies have used it to help their customers save money. Technology and software advancements have enabled EaaS companies to provide even better opportunities for energy savings. The future of EaaS is flourishing with numerous prospective energy management solutions. For example, the EaaS model could better align electricity demand with supply and allow grid services to overcome operational constraints. EaaS business models are also looking toward renewable energy integration and emission reduction so customers can increase sustainability while they save.
When you partner with RateAcuity, you ensure readily available electric rate information for your EaaS business model.
Each electrical utility typically presents its information in a unique format, making it challenging for consumers to compare electric rates. RateAcuity’s software provides what could take hours of manual research on one standardized platform. Our responsive web portal application can save you time and money with a customized, pre-deciphered utility rate data set. Generate, view and analyze reports from anywhere with an internet connection.
Whether you’re an energy provider, energy management software developer, utility service or research organization, RateAcuity will help you minimize the time it takes to gather accurate data. With our powerful application programming interface (API), you gain the ability to integrate our electric rates into your existing software programs and customer-facing products. You can maximize productivity and save time with the API’s seamless integration — keeping the data collection stage of an EaaS business model swift and accurate.
Trust RateAcuity for Reliable Energy Data Reporting
The RateAcuity web portal and API can help you quickly gather reliable energy data whenever you need it. Our knowledge of electric utilities nationwide ensures the data is accurate. RateAcuity is committed to forming sustainable partnerships that save customers money. With RateAcuity’s high level of accuracy, you can trust your company uses the most up-to-date reports for customers.
Contact us today and learn more about how RateAcuity can streamline your energy data collection.