Energy-as-a-Service (EaaS)
Energy-as-a-Service is a financing model where a third party owns, operates, and maintains energy assets in exchange for a share of the savings or a fixed service fee.
Under an EaaS arrangement, a provider installs efficiency or generation equipment at a customer's site and is paid from the energy savings the equipment produces. The customer avoids upfront capital and offloads performance risk to the provider.
EaaS contracts can cover LED lighting retrofits, HVAC upgrades, solar and storage, and comprehensive building optimization. They are structured as service agreements rather than equipment purchases, so the provider has an incentive to keep the equipment performing.
From a carbon accounting perspective, EaaS projects reduce Scope 1 and 2 emissions without capital expenditure. The savings must be measured and verified against a baseline, typically using utility bill analysis and interval meter data.
Frequently asked questions
What is Energy-as-a-Service? +
Energy-as-a-Service is a financing model where a third-party provider installs and operates energy equipment at a customer's site in exchange for a share of the savings or a fixed service fee.
How does EaaS reduce carbon emissions? +
Who owns the equipment in an EaaS contract? +
The EaaS provider typically owns and maintains the equipment. The customer pays through a service agreement tied to realized energy savings or a fixed fee.
Related terms
Energy Efficiency
Energy efficiency means using less energy to deliver the same service or output. In the context of carbon management, energy efficiency is the fastest, lowest-cost decarbonization lever because every unit of energy saved reduces both operating costs and greenhouse gas emissions simultaneously.
HVAC Optimization
HVAC optimization improves heating, ventilation, and air conditioning system efficiency through controls, scheduling, setpoint tuning, and equipment upgrades.
LED Lighting Retrofits
An LED lighting retrofit replaces fluorescent, HID, or incandescent fixtures with light-emitting diode (LED) technology. Retrofits typically cut lighting energy use by 40-70%, pay back in one to three years, and are usually the first project in a facility's energy efficiency roadmap.
BESS (Battery Energy Storage System)
A battery energy storage system (BESS) stores electricity for later use, charging when power is cheap or abundant and discharging when it is expensive or scarce. Commercial and industrial sites use BESS to cut demand charges, shift consumption to off-peak rates, provide backup power, and pair with on-site solar.