A Guide to Efficiency-as-a-Service
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. Efficiency-as-a-service is gaining popularity because it overcomes market barriers that other mechanisms do not, and it limits customer performance risk while still providing an avenue for short-term energy and cost savings. The energy services agreement (ESA) is the most common type of arrangement, but other models such as lumens-as-a-service and energy subscription agreements are also in use. This toolkit provides resources and project case studies for building owners, operators, and occupants that may want to take advantage of efficiency-as-a-service to improve energy and water performance in their facilities.
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Efficiency-as-a-Service Fact SheetThis fact sheet describes in detail the efficiency-as-a-service financing solution and summarizes different models in use.
Metrus Energy: Nationwide Deployment of Efficiency Services Agreement Implementation ModelMetrus Energy deployed multi-measure energy efficiency retrofits in BAE Systems facilities with no upfront costs using an Energy Services Agreement (ESA).
AT&T, Redaptive Efficiency-as-a-Service Program Implementation ModelRedaptive partnered with AT&T to implement energy efficiency measures at nearly 650 facilities using an efficiency-as-a-service financing solution, resulting in nearly $20 million in annual energy cost savings.Iron Mountain collaborated with Redaptive in an efficiency-as-a-service product to finance energy efficiency projects, creating a flexible future cost savings program.
Citizen Energy uses Efficiency-as-a-Service to Finance Multifamily Properties Implementation ModelCitizen Energy completed projects at two separate multifamily properties with different ownership structures using an efficiency-as-a-service financing solution, resulting in cash-flow positive outcomes since day one.Metrus Energy's Efficiency Services Agreement structure funded 100% of critical facility improvements and equipment upgrades for Kuakini Medical Center, with a projected 25% reduction in its total annual utility bill.
Citi Riverdale Data Center Energy Services Agreement Implementation ModelCiti used an energy services agreement to deliver efficient electricity and cooling at its London data center. The project is expected to deliver $1.1 million in annual cost savings.Sparkfund's Technology Subscprition service covers systems such as lighting, HVAC, fans, electric vehicles, and monitoring and controls - all owned and maintained by Sparkfund. Affinity Living Group was able to install new lighting at 16 properties without diverting resources away from serving residents by utilizing the subscription.
Allumia Finances Grocery Store Lighting Upgrade with Efficiency-as-a-Service Model Solutions at a GlanceAllumia funded and installed a new LED lighting system for Hilltop Red Apple grocery store using Allumia’s efficiency-as-a-service offering.
Metrus Energy Public-Private Partnership for Financing K-12 Efficiency Solutions at a GlanceMetrus Energy reaches efficiency-as-a-service deal to upgrade HVAC, building automation, hot water controls, and interior lighting at Jack Hebrew Academy with support from Pennsylvania's Green Energy Loan Fund.Efficiency upgrades often focus on improvements at one site due to the upfront costs required to finance a project. Citi and Metrus Energy developed a multi-site, multi-state Efficiency Service Agreement (ESA) that allows customers to implement projects with no upfront capital expenditure, demonstrating how ESAs can achieve scale.
On this webinar, we highlighted the efficiency-as-a-service toolkit and Better Buildings Financial Allies shared insights from the field.
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