Redaptive’s Efficiency-as-a-Service (EaaS) model is a simple solution that companies can take advantage of for their portfolio energy management. Our EaaS model functions very similarly to a Power Purchase Agreement (PPA), which allows for the installation of an energy system at little to no cost. Basically, in a PPA, the developer sells the power generated to the customer at a rate lower than the local utility rate to offset the cost of the energy system installation. According to the Solar Energy Industries Association, a PPA is, “…A financial agreement where a developer arranges for the design, permitting, financing and installation… on a customer’s property at little to no cost. The developer sells the power generated to the host customer at a fixed rate that is typically lower than the local utility’s retail rate. This lower electricity price serves to offset the customer’s purchase of electricity from the grid while the developer receives the income from these sales of electricity as well as any tax credits and other incentives generated from the system.”
This energy efficiency financing model allowed technologies like solar to scale very quickly because companies were able to simply purchase the energy generated by a solar energy system rather than the system itself. Redaptive disrupted the energy efficiency space by using a similar financing method, through our EaaS model, to help customers fund a variety of energy saving retrofits for their buildings and pay for avoided kWh through a service model instead of paying for the retrofits outright.
Better Buildings Initiatives describes the EaaS models as: “Efficiency-as-a-service is a pay-for-performance, off-balance sheet financing solution that allows customers to implement energy and water efficiency projects with no upfront capital expenditure. The provider pays for project development, construction, and maintenance costs. Once a project is operational, the customer makes service payments that are based on actual energy savings or other equipment performance metrics, resulting in immediate reduced operating expenses.”
Where our EaaS model differs from a PPA and is unique to other EaaS models is through our customizable and flexible contract structure combined with our vendor agnostic approach and metering solution, which not only validates energy savings but also provides transparency in energy efficiency that was previously non-existent.
Redaptive’s services can help you save energy at your commercial building through our Efficiency-as-a-Service model.