How ‘Energy-as-a-Service’ models unlock commercial decarbonisation
6 min read 1 August 2024
Delivering a Net Zero carbon economy is a defining task of our time.
The built environment accounts for 39% of global emissions, but for commercial building owners and operators, the energy transition has only recently become part of business-as-usual.
Mass electrification of heat and transport, soaring electricity prices, rising energy demand, and the introduction of stricter energy efficiency regulations are driving the decarbonisation of real estate.
This begs the question: What does sustainable, affordable energy look like for the built environment?
How do we make clean energy technologies more accessible? Are ‘Energy-as-a-Service’ models, also known as 'Equipment-as-a-Service,’–where customers pay a monthly subscription fee for the full use of clean energy technologies, meaning no upfront costs or ownership risks–the answer?
Read our latest piece, created in collaboration with Tallarna, a climate tech company, to explore the components of an ‘Energy-as-a-Service’ model, how they can be deployed, and how to increase take-up.
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What does this mean for you?
Key questions for real estate companies
What clean technologies should we install to best meet our business objectives, such as carbon reduction, cost management, and/or regulatory compliance?
What contract structure gives us the optimal risk/reward balance to achieve benefits in line with our risk appetite?
How can we structure an ‘as-a-Service’ agreement to generate additional yield for investors and lower-carbon buildings and lower bills for tenants – without capex outlay?
Key questions for manufacturers and solution providers
What is the best route to market for our solution and why?
What are the most attractive customer segments for different types of solution?
What is the optimal partnership ecosystem, including finance and insurance?
Key questions for financiers and insurers
How do these assets generate value for end users, and what is the residual value of clean energy technologies?
What are the options for structuring ‘as-a-Service’ offerings to appropriately manage risk? What capabilities are required?
What supply chain ecosystem is required to deliver these solutions? How can we best contract with them?
Get in touch with Daniel Bolton, expert in home and transport decarbonisation to find out how we can help your business answer these questions.