What is an Energy as a Service Agreement? | EnergyLink
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What is an Energy as a Service Agreement?

energy as a service agreement

An energy as a service agreement (EaaS) is a mutually beneficially partnerships between three parties: customer, third party owner and design-build contractor. The energy as a service market is thriving, even in the midst of a pandemic, and expected to be valued at over 140 billion by 2027. This rapid growth is due in part to the benefits EaaS offer all parties involved.

EaaS agreements can help customers circumvent challenges that come with installing a renewable energy system such as spending capital, system operation and maintenance, and taking on risk. This financing structure offers customers a risk free approach to lowering carbon emissions. Keep reading to learn more about this financing structure.

What is an energy as a service agreement?

An energy as a service agreement is a third party ownership model in which a customer pays a subscription-based energy service fee to the third party owner. The third party owner is typically a bank or investment firm looking to benefit from tax incentives and steady cash flow from the customer.

Customers in EaaS agreements can be corporations, nonprofits, government organizations or healthcare institutions. No matter who the customer is, they are entering into this agreement to install renewable or energy efficiency solutions to improve sustainability without capital investment. These solutions can include demand management, energy storage and power generation. Customers also avoid ownership hassles like system operations and maintenance under an EaaS agreement.

Read 3 Benefits of Operations and Maintenance

EaaS projects also involve a design-build contractor, like EnergyLink, who designs and completes the installation. EnergyLink will also help facilitate funding for customers from third party owners.

EaaS are not lease agreements; they are facilitated using either a solar service agreement (SSA) or an energy service agreement (ESA).

Interested in an energy as a service agreement?

If you are interested in entering into an energy as a service agreement and starting a renewable or energy efficiency project with no upfront capital payment, click the button to partner with EnergyLink. Our team of financial analysts will work to find the best project funding solution, tailored to your organization’s needs. EnergyLink is a national certified ESCO that designs, builds and funds projects for a range of commercial and industrial entities. Click the link below to learn more about other project financing avenues available to your organization.

Learn more about project financing

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