January 31, 2020 - 7:07 AM EST
Print Email Article Font Down Font Up Charts



3 Companies Pioneering Energy Efficiency as a Service (EEaaS)

Energy efficiency as a service, or EEaaS, is a growing trend that enables building owners in the public and private sectors to upgrade the efficiency of electricity and water systems, reduce utility usage, potentially save money, and become more environmentally friendly. Johnson Controls (NYSE: JCI), CBRE (NYSE: CBRE), and General Electric Company (NYSE: GE) have all made investments in companies that will perform these efficiency upgrades and enter long-term contracts, providing a new source of stable revenue for investors.

According to the U.S. Department of Energy, EEaaS is a pay-for-performance, off-balance-sheet type of finance structure that enables customers to implement energy and water efficiency projects with no up-front capital expenditure. The provider of the upgrades pays for project development, construction, and maintenance costs, and when the upgrades are finished, the customer makes service payments on a long-term basis. The payments are based on actual energy savings or other equipment performance metrics, the Department of Energy said, which result in immediate reduced operating expenses. The deals are typically done using a contract known as an energy services agreement, which extends for five to 15 years in most cases. https://betterbuildingssolutioncenter.energy.gov/financing-navigator/option/efficiency-a-service

Programs encouraging building owners to test EEaaS initiatives are springing up around the U.S. Last year, for example, the Seattle City Council directed its electric utility to enter into pilot projects for up to 30 buildings using EEaaS contracts that can extend up to 20 years. 

Continue reading


Source: Motley Fool (January 31, 2020 - 7:07 AM EST)

News by QuoteMedia
www.quotemedia.com

Legal Notice