Hot Water, Lights, and Solar as a Service?

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A number of start-up companies are trying to formulate a business model that sells hot water, lights, air conditioning, and solar power as a service.

The rationale is that the folks occupying buildings don’t necessarily want to own the equipment that produces hot water, light, cool air, or solar power, but they do want the end result.

The current model is that the companies (such as Skyline Innovations and Metrus Energy) retrofit commercial and industrial buildings, retain ownership of the equipment, and then charge a fee for the energy avoided. Because the fee is almost always less than the cost of the energy avoided, and because the maintenance costs of the equipment are generally included in the fee, the building owner can see further savings.

You can read more about this at Greentech Media.

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End Use

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This post is part of our definitions series on “eco-lingo” and technical terms.

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Studies frequently segment energy or water use by “end use”,  or the reason the energy was consumed, in order to better understand how the resource is used. For both energy and water, consumption is often first broken down by sector (commercial, residential, industrial) and then by end use (lighting, heating, etc.)

The first graph below is of California electricity use by sector. The second graph below is of California electricity use by sector AND by end use.

The end use categorizations in the graphs above are still pretty broad categories – some analyses break them down even further. The original data in the graphs comes from a CEC staff report. I used the same aggregate categories as Flex Your Power:

  • The Commercial Misc. category includes refrigeration, hot water, cooking, and office equipment.
  • The Residential Other category includes water heating, cooking, pool/spa, clothes washers, dishwashers, and freezers.
  • Industrial Process includes process fans, heating, pumping, and refrigeration.
  • Industrial Other includes material handling and processing.
  • The “Other” category includes street lighting and other government end uses.

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What exactly does “sustainability” mean? How about “green”, “eco” or “environmentally friendly”? The truth is that these terms are just vague enough to mean many different things to many different people. With the staggering array of “green” products, ‘lifestyles’ and concepts being promoted by marketers and environmentalists alike (as well as the necessary coining of new terms to match new ideas) our definition series aims to make sense of the rising tide of “eco-lingo” and technical terms.

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