The impact of climate change is becoming more and more prominent over the years. 2024 brings new trends in sustainability development that are more tech-centered.
It has become a top priority for companies to adopt innovative technologies to reshape the energy landscape.
It begins with controlling carbon emissions and utilizing renewable energy, but as time progresses, new ways of achieving sustainability emerge, notably the Energy as a Service (EaaS) model.
While businesses and governments explore new paths to reduce the negative impact on the environment, ensuring a reliable and affordable energy supply is essential.
Energy-as-a-Service (EaaS) is a business model that involves the maintenance of energy systems through a service provider that bears responsibility for installation, operation, and financing.
The model offers remarkable benefits in terms of costs, operational quality, and environmental sustainability.
Services
The Energy-as-a-Service (EaaS) model encompasses a wide range of services, enabling customers to access energy solutions without the need for upfront capital investments.
Here are some of the key services offered under the EaaS umbrella:
Lighting
Lighting as a Service (LaaS) providers offer comprehensive lighting solutions, including the installation, maintenance, and management of energy-efficient lighting systems.
Customers pay a recurring fee for the service, which often includes energy monitoring and optimization.
Solar
In this model, EaaS providers install and maintain solar photovoltaic (PV) systems on customers’ premises, offering them access to renewable energy without the upfront costs of purchasing and installing the systems. Customers pay a subscription fee for the solar energy generated.
Management
Energy Management as a Service (EMaaS) providers offer software solutions and expertise to monitor, analyze, and optimize energy consumption across buildings or facilities.
They help customers identify energy-saving opportunities and implement strategies to reduce energy costs and emissions.
Heating and Cooling
EaaS providers can install and maintain heating, ventilation, and air conditioning (HVAC) systems for customers, ensuring optimal performance and energy efficiency.
Customers pay a recurring fee for the heating and cooling services, avoiding the upfront costs of purchasing and maintaining HVAC equipment.
Battery Storage
In this model, EaaS providers install and maintain battery storage systems on customers’ premises.
Customers pay a subscription fee for the stored energy, which can be used during peak demand times or power outages, enabling them to optimize their energy usage and reduce costs.
Benefits of Energy as a Service (EaaS)
The Energy-as-a-Service (EaaS) model offers several benefits to customers, including:
Reduced Upfront Costs
By avoiding the need for significant upfront capital investments, EaaS lowers the barrier to entry for customers seeking to adopt energy-efficient or renewable energy solutions.
Improved Energy Efficiency
EaaS providers specialize in optimizing energy usage, implementing energy-saving strategies, and leveraging the latest technologies, resulting in improved energy efficiency and cost savings for customers.
Access to New Technologies
EaaS providers can offer customers access to the latest energy solutions and technologies, which may otherwise be cost-prohibitive or require specialized expertise to implement and maintain.
Reduced Maintenance and Operational Costs
By taking responsibility for the installation, operation, and maintenance of energy systems, EaaS providers relieve customers of these burdens, allowing them to focus on their core business activities.
Emerging Brands in Energy as a Service (EaaS)
As the EaaS model gains traction, several companies have emerged as prominent players in this space:
Schneider Electric
Schneider Electric is a global leader in energy management and automation solutions.
The company offers a range of EaaS solutions, including lighting, HVAC, and energy management services, leveraging its expertise in energy efficiency and digital technologies.
Enel X
Enel X, a subsidiary of the Italian energy company Enel, provides EaaS solutions focusing on renewable energy, energy storage, and energy management.
The company offers solar, battery storage, and energy optimization services to commercial and industrial customers.
Siemens
Siemens, a leading technology company, offers EaaS solutions through its Building Technologies division. The company provides energy management, building automation, and HVAC services, helping customers reduce energy costs and emissions.
Engie
Engie, a French multinational energy company, offers a wide range of EaaS solutions, including renewable energy, energy efficiency, and energy management services.
The company has a strong focus on a sustainable future and decarbonization.
Honeywell
Honeywell, a multinational conglomerate, provides EaaS solutions through its Building Technologies division.
The company offers energy management, building automation, and HVAC services, leveraging its expertise in the Internet of Things (IoT) and connected building technologies.
These companies, along with many others, are driving the adoption of the EaaS model, offering customers innovative and cost-effective energy solutions while promoting sustainability and energy efficiency.
Market Report
As of 2024, the estimated Energy As A Service Market size is around $94.16 billion, expected to reach $169.52 billion by 2029, growing at a CAGR of 12.48% during the forecast period of 2024-2029.
Closing thoughts on Energy-as-a-Service (EaaS)
Employing a subscription-based service to manage energy systems is a modern solution to an ever-present problem.
Like any new innovative strategy, the model comes with its risks as well as drawbacks. What is worthwhile to consider is its convenience and personalized approach to maintaining a sustainable future.
We live in an age where new issues keep emerging that require immense attention and time, it goes to say that managing a business in 2024 is no easy task.
Subsequently, while modern problems arise, the entrepreneurial world offers modern solutions.
Entering 2024, it is impossible to ignore sustainability. We’ve explored several topics about sustainability in business within the Sustainability Spotlight.
What do you think of this approach? How do you stay sustainable?
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