Commercial facility managers and owners face constant pressure to reduce operational costs while improving building performance and commercial HVAC maintenance. Traditional energy upgrades will obviously offer respite over perpetual commercial HVAC repair but often require significant upfront capital or new debt, creating a different barrier for many organizations. Energy Savings as a Service (ESaaS) removes that barrier by tying payments to verified energy savings, with no upfront investment and full maintenance included. This article examines real case studies from commercial facilities that have adopted as-a-service models and related performance contracts, showing the measurable outcomes achieved.
Understanding Energy Savings as a Service (EaaS)
The Efficiency-as-a-Service (EaaS) model involves a technology provider installing, maintaining, and owning equipment while the customer pays per unit of service delivered. This can be structured as dollars per cubic meter of compressed air or per hour of lighting. Under a formal EaaS arrangement, commercial facilities can upgrade lighting, HVAC, power systems, or water conservation without taking on debt or tying up capital. The provider retains ownership of the equipment and assumes performance risk, making the model attractive for budget-constrained and risk-averse decision-makers.
Real World Energy Savings Case Studies
The following examples demonstrate how different as-a-service and performance contracting models have delivered energy and cost savings for commercial facilities, institutions, and municipalities. Each case study highlights a specific approach and the results achieved.
Signify Light-as-a-Service for Nexans (Switzerland)
Signify provided a Light-as-a-Service solution for Nexans’ Swiss facility, replacing outdated fixtures with LED lighting. The service model improved workspace comfort and reduced energy consumption. While exact savings percentages were not disclosed in the available data, the shift to LED technology in an as-a-service framework eliminated upfront capital expenditure for Nexans and shifted maintenance responsibility to Signify. This case illustrates how commercial facilities can modernize lighting systems with no upfront investment while gaining ongoing performance guarantees.
EDF Renewables Battery-as-a-Service for Beck & Co Brewery
EDF Renewables supplied a Battery-as-a-Service solution to the Beck & Co brewery, part of AB InBev. The system manages peak demand by storing energy during low-demand periods and releasing it at high-load times. This reduces demand charges and helps stabilize energy costs. The brewery pays a service fee rather than purchasing and maintaining battery equipment. This approach is ideal for facilities with fluctuating energy demand, such as manufacturing plants and cold storage warehouses, where managing peak loads is critical to controlling utility bills.
Constellation Energy Solutions at Denver International Airport
Constellation Energy Solutions implemented a package of energy efficiency measures for Denver International Airport (DIA). The upgrades are designed to save approximately $900,000 annually. Although this is a performance contract rather than a pure as-a-service model, it demonstrates the scale of savings possible when a third party finances and guarantees energy reductions. Commercial facilities can apply similar strategies to lighting, HVAC, and operational improvements while avoiding upfront costs through performance-based agreements.
Newark Housing Authority Building Upgrades
The Newark Housing Authority undertook a two-phase project involving building efficiency upgrades. These upgrades are projected to reduce energy costs by nearly $300 million over the life of the project. This case, also from Constellation Energy Solutions, shows how large institutional portfolios can achieve massive savings through comprehensive energy retrofits. For commercial facilities managing multiple properties, a portfolio-wide approach combined with guaranteed savings contracts can deliver significant financial and environmental benefits.
Shell Energy Cleaner Energy at Penske Turnersville Auto Mall
Shell Energy assisted the Penske Turnersville Auto Mall in achieving 20% energy savings over 11 months through cleaner energy solutions. This result demonstrates that even without a full as-a-service retrofit, commercial facilities can realize substantial savings by partnering with an energy provider to optimize supply and reduce consumption. The 20% savings figure is the only quantified percentage provided in the source data, making it a useful benchmark for facility managers evaluating potential improvements.
Comparing EaaS with Guaranteed Energy Savings Performance Contracting
Two common models for funding energy upgrades are Energy Savings as a Service (EaaS) and Guaranteed Energy Savings Performance Contracting (GESPC). EaaS is a pay-per-use model where the provider owns the equipment and the customer pays for the service delivered, such as per hour of lighting. GESPC is a performance contract that guarantees energy savings, often used in public sector projects. The Energy Services Coalition maintains a searchable database of GESPC projects from across the United States. EaaS examples in the research pack focus on European initiatives (BASE), while GESPC examples come from U.S. projects. Both models eliminate upfront capital, but EaaS shifts equipment ownership entirely to the provider, whereas GESPC typically involves the customer taking ownership after the contract term. Commercial facility managers should evaluate which structure aligns better with their financial goals and risk tolerance.
Regional Variations in Energy Savings Case Studies
The available case studies show distinct regional patterns. The EaaS initiative case studies from BASE cover Europe, including Switzerland and Germany. Constellation Energy Solutions covers U.S. government, healthcare, and education sectors. Mass Save provides case studies specific to Massachusetts residents, businesses, and communities. Energy Saving Trust covers the United Kingdom, and Save on Energy focuses on Ontario, Canada. This geographic diversity means that facility managers should seek case studies from programs relevant to their utility territory and regulatory environment. While the fundamental principles of energy savings as a service apply universally, local incentives and energy rates will affect the specific financial outcomes.
How to Evaluate Energy Savings as a Service Providers
When considering an energy savings as a service arrangement, facility managers should look for providers that offer turnkey upgrades, include full maintenance, and tie payments directly to verified savings. Key evaluation criteria include the provider’s experience with similar facility types, the technology solutions offered (lighting, HVAC, power optimization, water conservation, solar, variable frequency drives), and the availability of benchmarking services. Some providers also offer fractional energy management and cost segregation analysis. It is important to review case studies that match your facility’s size, industry, and geographic location. The examples from the research pack demonstrate that both large institutional portfolios (Newark Housing Authority) and single commercial facilities (Penske Auto Mall) can benefit from expert-led energy management.
Energy savings as a service case studies show that commercial facilities can significantly reduce energy costs without upfront capital or new debt. The models range from pure as-a-service (e.g., Signify Light-as-a-Service) to performance contracts (e.g., Constellation at DIA), but all share a focus on transferring financial and performance risk to the service provider. As more case studies become available through databases like the Energy Services Coalition and programs like Mass Save, facility managers have growing evidence to support their decision-making.
Frequently Asked Questions
What is the difference between Energy Savings as a Service and a traditional energy performance contract?
Energy Savings as a Service is a pay-per-use model where the provider owns the equipment and the customer pays for the service delivered, such as per hour of lighting. A traditional energy performance contract, such as Guaranteed Energy Savings Performance Contracting (GESPC), guarantees specific energy savings but often involves the customer taking ownership of equipment after the contract term. Both eliminate upfront capital, but ownership and payment structures differ.
How can I find case studies relevant to my facility type and region?
The Energy Services Coalition maintains a searchable database of GESPC projects across the United States. Mass Save offers case studies for Massachusetts. Energy Saving Trust covers the UK, and Save on Energy covers Ontario, Canada. For European EaaS examples, the initiative launched by BASE, AGORIA, ANESE, and EiT Innoenergy in June 2020 provides resources. Focus on case studies that match your facility size, industry, and utility territory. Of course, you can reach out to ONSITE Utility Services as well.
Do energy savings as a service models require any upfront payment or debt?
No. The defining feature of energy savings as a service is that it requires zero upfront capital and adds no new debt to the customer’s balance sheet. Payments are made only after verified energy savings are achieved, with the provider owning and maintaining the equipment. This makes the model attractive for budget-constrained and risk-averse organizations.
What types of technologies are typically included in an energy savings as a service program?
Common technologies include LED lighting upgrades, HVAC optimization, power optimization (including voltage optimization and variable frequency drives), water conservation systems, solar energy generation, clean indoor air solutions, and battery storage. Providers may also offer benchmarking and fractional energy management services to track ongoing performance.
How long does it take to see results from an energy savings as a service project?
Results can appear quickly. For example, the Penske Turnersville Auto Mall achieved 20% energy savings over 11 months through cleaner energy solutions. Lighting upgrades can show savings immediately, while HVAC and battery storage projects may take several months to optimize. The provider typically guarantees savings from the start of the contract, so facility managers begin benefiting right away.