Energy as a Service (EaaS)

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Energy-as-a-Service (EaaS) is a performance contracting structure in which a contractor/provider installs and owns, and sometimes operates and maintains, energy-saving equipment in a host facility, and is paid based on the energy savings generated during the term of the energy services agreement (ESA).
There are numerous permutations of the business model, and the host facilities can range from residences to large industrial concerns. Since the provider owns the equipment, the deals are generally considered to be off-balance sheet, an especially attractive feature for private sector customers, where the model has gotten the greatest traction (in contrast to traditional energy savings performance contracting).
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