While most businesses want to make the switch to renewable and clean energy, the process comes with many questions. Do we have the necessary skills and knowledge to implement an energy transition project? Do we have the resources available? And perhaps most importantly, can we afford it?
Until recently, impactful renewable energy transition projects required significant investments and time, something that businesses of all sizes struggled to balance with their core business priorities. Today, Energy as a Service (EaaS) provides an answer to this question. EaaS is a unique approach that accelerates the transition to renewable energy and provides major financial benefits for companies of all sizes, regardless of where they are on their energy transition journey.
Let’s examine some of the financial advantages EaaS models provide:
- Reduced Upfront Cost
- EaaS reduces the need for large upfront capital investments and costs by adopting a business model that allows customers to enjoy the benefits of a product without purchasing it or directly managing its use. This is especially advantageous for enterprises of all sizes that may shy away from a large capital expenditure in clean energy infrastructure that can take years to show a return on investment. EaaS enables businesses to access renewable energy solutions without incurring large upfront costs, boosting cash flow and allowing resource allocation for other key areas of their operations.
- Access to Cost-Effective Technology
- Renewable energy technology is increasingly cheaper than fossil fuels per the International Energy Agency, which notes that 60% of renewable energy projects that came online in 2020 were less expensive than the cheapest new fossil fuel power planets. EaaS provides businesses with access to new innovations and more cost-effective energy solutions that include solar, onshore and offshore wind power, and others. The lower upfront expenses of renewable energy make it financially feasible for businesses to acquire cutting-edge solutions that they might not otherwise believe they can afford. This democratization of renewable energy technologies enables businesses to remain competitive, decrease their environmental footprint, and plan for the future.
- Predictable and Stable Costs
- Predictability is crucial, especially as businesses navigate economic volatility. Knowing their energy bills ahead of time allows for better budgeting and long-term financial planning. EaaS gives access to renewable energy sources with set, predictable pricing, compared to traditional energy sources where prices fluctuate constantly. Businesses have grown to appreciate this steady financial basis to enable long-term growth, and also benefit from advanced analytics and software tools to identify areas of energy and cost wastage.
- Reduced Maintenance and Operational Costs
- EaaS delegates maintenance and operational duties to service providers, reducing operational expenses for customers. At Calibrant Energy, we ensure the seamless functioning and repair of renewable energy infrastructure. This partnership helps businesses save money by reducing the need for in-house teams and expensive maintenance contracts—funds that can be invested elsewhere to grow their business and support their workforce.
Putting EaaS into Action for Albany County
As a trusted EaaS provider, Calibrant Energy plays a pivotal role in helping businesses, schools, and municipalities achieve sustainability goals while balancing costs and risks. As a recent example of our work, Calibrant is serving as the long-term financing partner and operator for Albany County’s first major solar photovoltaic (PV) ground-mount array, featuring a 2.1-megawatt solar farm.
Owned and operated by Calibrant Energy, the solar farm will provide Albany County with nearly 2.6 million kilowatt hours of clean, renewable electricity each year. Albany will be credited for the power generated on county property, providing long-term benefits to county taxpayers into the future.
EaaS paves the way for sustainable energy, offering substantial financial advantages that foster a more climate-friendly future for businesses and communities across the globe. By reducing upfront costs, providing access to innovative technologies, ensuring predictable expenses, and relieving maintenance burdens, EaaS empowers businesses to embrace clean energy without compromising their financial stability.
Contact us if you’re interested in learning more about how EaaS can help build a sustainable financial future.