The fallout from the global pandemic lowered occupancy and usage for some large facilities, yet energy bills didn’t necessarily decrease at the same pace to alleviate the cost burdens of maintaining base operations and systems.
Key Equipment Finance
As the economy recovers, now may be an ideal time to consider energy efficiency measures as a means of cost management, says Feltes, Account Manager, Clean Energy, for Key Equipment Finance.
Supply chain organizations are naturally focused on efficient processes, and Energy Efficiency-as-a-Service (EEaaS) is a newer approach that helps warehouses, delivery hubs and other logistics facilities reduce their energy use while making a positive impact on the health of the planet.
EEaaS also enables supply chain facilities to conserve their cash for other uses. With the economic pressures of today, most know cash is king—and cost reduction is queen. By using financing, supply chain facilities may benefit from energy efficiency upgrades while avoiding capital outlays.
Defining Energy Efficiency-as-a-Service
What is energy efficiency-as-a-service, and how does it work? EEaaS is a pay-for-performance, off balance sheet financing solution that allows facilities to implement energy, water and other efficiency projects with no upfront capital expenditure, according to the Better Buildings Financing Navigator by the U.S. Department of Energy.
The Energy Services Agreement (ESA) is the most common type of arrangement, according to the U.S. Department of Energy, but other models such as lumens-as-a-service and energy subscription agreements are also in use.
Here's the rest of the article by Jamie Feltes in DC Velocity: