Hot Water, Lights, and Solar as a Service?


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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