Back to OurEnergyLibrary search

Encouraging Electrification through Energy Service Subscriptions

Encouraging Electrification through Energy Service Subscriptions

Full Title: Encouraging Electrification through Energy Service Subscriptions
Author(s): Kathryne Cleary and Karen Palmer
Publisher(s): Resources for the Future (RFF)
Publication Date: April 29, 2020
Full Text: Download Resource
Description (excerpt):

Energy-as-a-Service (EaaS) is a private business model that enables consumers to subscribe to an energy service (such as lighting), rather than purchasing the equipment necessary to provide that service (such as light fixtures). In the past, EaaS has helped encourage the deployment of low-carbon technologies like energy efficient equipment by eliminating high upfront costs for consumers. In this paper, we assess how the EaaS model can be used to help overcome barriers for electrification of energy end-uses like vehicles and water heaters, which is critical for reducing carbon emissions from transportation and buildings. We explore the potential of two basic hypothetical EaaS business models: a subscription for energy management, which involves optimizing energy usage in order to minimize costs, and a subscription for energy services, which enables consumers to use an energy service such as hot water without purchasing the necessary devices. These business models are possible under two different frameworks, a time-varying pricing variant and a demand-response variant, that allow service companies and customers to benefit from these business models.

All statements and/or propositions in discussion prompts are meant exclusively to stimulate discussion and do not represent the views of, its Partners, Topic Directors or Experts, nor of any individual or organization. Comments by and opinions of Expert participants are their own.

Sign up for our Press Release Distribution List

Your Name (required)

Your Email (required)

Please sign me up to receive press releases from