The wind farm off the coast of Rhode Island. (Photo: Eric Thayer/Bloomberg)

You may have heard that energy-as-a-service (EaaS) is expected to be a major disruptor in the energy industry in 2020 and beyond. But what exactly is EaaS, and how can your energy clients benefit from this emerging business model?

What is EaaS?

EaaS is a business model that involves companies partnering with outside experts for the purpose of regaining control over energy spending. Simply put, energy experts (also known as energy resource consultants) partner with companies, analyze their energy profile, and identify the best opportunities for controlling and optimizing energy efficiency. This includes assisting with energy supply and management best practices to determine more efficient and productive use of energy. 

Is EaaS right for your clients?

For most companies, access to in-house energy experts can be scarce. This, coupled with the fact that increases in energy costs make up a large portion of operating budgets, have businesses looking for ways to manage this costly expense. To help companies better reach their sustainability goals and cut costs, an EaaS partner evaluates energy use, recommends ways for the business to save energy and make existing operations more energy-efficient, and even may suggest alternative energy sources. 

For example, an EaaS company can monitor a building's power-usage patterns in equipment such as compressors, HVAC units and specialized machinery. The process can identify how much energy each type of equipment uses, when it uses it and whether the use is excessive. It can also evaluate machinery and equipment to determine whether they are operating efficiently and should be replaced. 

Even more attractive is that, in general, most EaaS business models work on a subscription basis, allowing customers to immediately initialize the service and enjoy the benefits without having to make an upfront capital investment.