Financed Energy as a Service Solutions Provide an Alternative to Capital Expenditures Across Various Commercial and Industrial Segments

Industry stakeholders should work together to tailor energy as a service solutions to address the needs of different commercial and industrial building segments

May 02, 2019

A new report from Navigant Research assesses the energy and portfolio management factors that will influence the deployment of emerging financed energy as a service (EaaS) solutions for various commercial and industrial (C&I) segments.

The global electric power industry is facing a transformational shift from centralized generation toward a more decentralized grid with two-way energy flows. This emerging mix of energy efficiency, distributed energy resources (DER) technologies, and smart grid solutions is disrupting traditional utility models while creating new opportunities for C&I customers. Click to tweet: According to a new report from @NavigantRSRCH, key factors influence the decision to deploy new financed EaaS solutions as an alternative to capital expenditures (CAPEX) for C&I energy users.

“Corporate C&I energy and sustainability managers are looking for cost-effective, customized, and comprehensive energy solutions that can guarantee energy savings without CAPEX to meet their sustainability and operational efficiency needs,” says William Tokash, senior research analyst with Navigant Research. “Meanwhile, vendors are introducing a broader set of portfolio-wide, sector-specific technical, financing, and business model energy management options beyond fee-for-service energy efficiency that requires customer CAPEX.”

For market stakeholders, Navigant Research recommends utilities, energy suppliers, EaaS solutions providers, and technology manufacturers work together to deliver software platforms that better enable the EaaS needs of different C&I customer segments. DER project financiers across various C&I energy use segments should focus on delivering financing options that manage investor risks, lower costs for solutions providers, and better guarantee customer savings for C&I customers across various segments. Additionally, C&I energy users looking to reduce energy use and spend should seek to better understand how to integrate EaaS solutions offerings into their fee-for-service versus CAPEX decision-making.

The report, Emerging EaaS Solutions for C&I Customers of the Future, analyzes emerging financed EaaS solutions for C&I energy users. The study provides an analysis of the energy and portfolio management factors, and financing options that impact C&I energy user decision-making. Six leading financing asset classes and three major classes of C&I facilities are discussed, and a ranking of key energy management of portfolio factors by C&I segment is provided. The report also gives recommendations for stakeholders impacted by EaaS solutions. An Executive Summary of the report is available for free download on the Navigant Research website.

Contact:

Lindsay Funicello-Paul

+1.781.270.8456

lindsay.funicello.paul@navigant.com

* The information contained in this press release concerning the report, Emerging EaaS Solutions for C&I Customers of the Future, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.