Onsite Launches Energy-as-a-Service as a solution to REITs Deferred Maintenance Problem
Modern office building illustration

Delavan, Wisconsin – Onsite Utility Services Capital (OUS Capital) creates energy savings as a service to help solve the commercial buildings infrastructure financial shortfall.

Many building investors don’t realize that the initial cost of building a new building is dwarfed by the cost for the building’s maintenance, equipment repairs and replacement and energy costs over the building’s lifecycle. For example, if a building cost $20 million for construction, it would require $80 million to pay for the cost of maintenance, repairs, replacements, and energy over its usable life. Advanced energy technologies are a much higher investment cost, but buildings are typically built with the first cost budget in mind which results in higher operating costs for heating, cooling, and maintenance. With any budget shortfall, deferring maintenance investments becomes part of the problem which only compounds the operating costs and reduces the overall life of the building. Deferring maintenance can ultimately create an emergency which is made worse by the supply chain issues in HVAC and electric equipment infrastructure.

Fritz Kreiss, CEO of www.onsiteutilityservices.com commented “Businesses don’t like to use their capital investing in saving energy. They would rather use their capital to invest in more buildings and growing company revenue. It’s easier to defer HVAC or electric infrastructure replacement and upgrades than the high cost of proper lifecycle replacement. To overcome the CapEx barrier, Onsite uses savings from energy conservation or onsite generation to create budget neutral solutions for infrastructure and maintenance projects that are needed at the facility. Onsite provides all the capital through its Energy Decarbonization Fund and includes maintenance and service on all the equipment we invest in and own at your facility. Our Energy Savings-as-a-Service allows for real estate investors to make facility infrastructure improvements without tapping into their annual operating budgets.”

Fritz Kreiss added,” Onsite removes the CapEx and debt barrier for REITs to reduce their carbon footprint while saving energy and then we deploy those savings into infrastructure and maintenance needs at their site. We engineer and install advanced energy technology and we provide all the capital for the improvement. By improving the efficiency of different systems like HVAC units or LED lighting, we also extend the life of the existing equipment thereby moving further CapEx expenditures into the future. “

Onsite Utility Services Capital operates nationwide in the US, Canada, and Mexico

Written by OUS

February 21, 2024

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