What is Energy as a Service
The Energy as a Service (EaaS) smart business model can be synthesized into two functions: Offering alternatives to save energy through energy efficiency operations, and therefore ways to save, and recommending new ways to get energy, from its production to its storage. In conclusion, to provide guaranteed savings.
New paradigm: service-based business model
We find ourselves in a new paradigm, the result of a business model that has been developing over the last decade: a model based on services. The process began primarily in the communication technology and information technology sectors and has now reached the energy sector.
Currently, in the energy sector, the business model known as Energy as a Service is booming, whose scheme is based on a subscription with a fixed energy fee. In other words, the traditional business model based on the product, which means paying for the energy consumed (direct payment for electricity) is beginning to become obsolete in the face of the economic advantage for the customer that EaaS represents.
Savings and advantages of Energy as a Service
As we have specified above, Energy as a Service is characterized by its most striking attribute: guaranteed savings. However, we should not overlook other highly significant advantages:
1. Prioritizes the client
As we have just discussed, the Energy as a Service business model puts the customer at the center of the scheme by providing a wide range of alternatives with which to reduce energy costs. Beyond savings, EaaS provides the convenience of knowing that your company manages energy and services for you. At Enertika we not only cover the needs of each client, but we also guarantee the energy supply through the subscription method. So, we could dare to conclude that this model is not only based on services, but also on the customer.
2. Offers the best technologies
Ultimately Energy as a Service is about overcoming the barriers to accessing the latest low-carbon technologies, as it is in the hands of the company to provide the most optimal ways of obtaining energy for the customer. If it were up to the customer to make these technologies available, it would be a huge initial and ongoing investment. So we take responsibility for the implementation of new energy procurement technologies in order to meet the requirements of our customers, both in terms of energy usage and in terms of upgrading solutions.
3. Boosts the low-carbon and renewable energies
Offering the best technologies inevitably means meeting the challenge of low-carbon and zero-emission energy. Part of the respective business model outline is the process of replacing traditional methods of obtaining energy.
It is a fact that in order to take the plunge, it is necessary to break with conceptual stigmas about renewables and demystify them a bit to break down their concept of inaccessibility. Or just take a look at the new carbon emission rates (or the more mainstream option: see Before the Flood on the more than talked about climate change).
Thus, Energy as a Service is a solution to the many barriers to renewables: misinformation, lack of knowledge about their energy and technological performance, their considerable economic cost, the impositions of the international market, etc.
4. Economy decarbonization
Fortunately, the current socioeconomic context positions renewable energy generation favorably, with a high competitiveness in the market compared to fossil fuels. This is mainly due to the work of dissemination and awareness of the scientific community on climate urgency and the environmental measures applied, both carbon emission taxes and incentives to promote renewables, a clear example of which is the EU’s Next Generation plan.
The skepticism of some sectors may receive a reality check by taking a look at the trend indicators among large companies and their commitment to renewables. For, yes, the sum of Energy as a Service with clean, low-carbon energy results in a reduction in the cost of energy along with price stability and predictability. Moreover, such economic decarbonization is intrinsically linked to the phenomena of digitalization and urbanization part of the business model based on energy services.
5. Energy efficiency improvement
In short, the concept of energy efficiency is defined as achieving the highest energy performance with the least possible energy, and therefore savings on your energy bill. The Energy as a Service method implies an improvement in energy efficiency, since the company itself is responsible for implementing new technologies that provide the customer with the best performance of its facilities. In fact, the model fights in a way the social gap of energy efficiency by fighting against financial interests that do not take into account the effects of expanding electricity consumption with the sole purpose of increasing their income.
What about photovoltaics within Energy as a Service?
One demonstration of the ability of EaaS to overcome barriers to access to renewables is the ripple effect it has had on the solar PV sector. This is embodied in the Solar as a Service concept, which in a nutshell is one of the things we do at Enertika with our distributed generation service.
Solar energy has numerous advantages, from the introduction to the energy transition to reducing dependence on the grid. But obviously, when it is part of the traditional product-based business model, meaning the product as the PV panels themselves, the initial investment can be an impediment. In addition to the uncertainty of energy prices due to the payback periods since the purchase. This is where the Energy as a Service model offers an impeccable solution that removes all problems from the map, since the initial investment in the purchase of the installation and its maintenance is in the hands of the company. In fact, this is how the PPA (power purchase agreement) model we work with at Enertika works, which we will discuss in detail later on.
We do not know exactly the purpose of this article: to convince you a little, to persuade you to take the step, to inform you or to get you to contact us. As long as it has fulfilled at least one of these objectives, we are satisfied.