Energy has always been considered a fixed cost and a necessity for daily operations. It was left to chance because energy was often subject to market forces and regulations. However, the government’s aim to decarbonise and achieve true sustainability by 2050 gave rise to Energy-as-a-Service (EaaS) and green loans for businesses.
For business owners, maximising their ROIs while reducing their companies’ carbon footprint might sound too good to be true. But this goal can actually be achieved by understanding how green loans and EaaS work. Let’s see how EaaS and Green Loans will benefit businesses.
Why Energy-as-a-Service (EaaS)?
Energy-as-a-Service or EaaS is a flexibile funding and delivery model where in most cases upfront capital is not required to invest in sustainability initiatives. Business owners pay for specific energy services provided by companies that specialise in EaaS. EaaS covers a combination of energy, water, waste, infrastructure, services and digital solutions that support Net Zero ambitions.
The main goal of EaaS, especially for companies, is to decentralise energy generation to ensure effective, reliable, and balanced loads to avoid disrupting business operations.
Did you know?
3E Group offers an innovative partnership and services delivery model through EaaS to accelerate an organisation’s Net Zero transition.
Advantages of Energy-as-a-Service Partnerships
EaaS is an outcomes based, customer-centric business model to
- Preserve Capital for your core operations
- Combine low-carbon technologies with smart city digital solutions
- Reduce complexity
- Integrate energy generation and efficiency solutions
- Meet Net Zero Goals
An EaaS provider will typically partner with you to co-create sustainable, connected and integrated energy infrastructure solutions for business, precincts and territories.
In addition, your EaaS partner will leverage the latest technologies, such as modern analytics platforms and the Internet of Things (IoT) to gather pertinent data in real-time. These help in understanding how facilities consume energy and formulate solutions to make them energy efficient.
Building partnerships with companies like 3E Group, that specialise in EaaS, is an effective way of earning back investments while achieving Net Zero outcomes.
Why Green Loans are Essential for Businesses?
Green loans are meant for sustainability projects and meeting cost-saving goals. Monetary institutions such as banks or peer-to-peer lenders offer these types of loans to companies and business owners.
Often called a ‘sustainability-linked loan’, green loans differ from typical loans as repayments are often included in the utility bill. Some lenders require their borrowers to provide updates on their energy performance data and manage their buildings efficiently. Moreover, the loan’s cost shouldn’t exceed the expected energy savings.
Advantages of Green Loans for Business Owners
Green loans are aimed towards financing green projects or upgrading existing facilities to become sustainable. These will help a company build its reputation of being sustainable and credible to its community and peers.
Since credibility and reputation are some of the advantages of green loans, these open doors for entrepreneurs to access ESG-focused investors and new markets. In addition, these new opportunities protect companies against market disruptions brought by the effects of climate change.
At 3E Group, we offer an innovative partnership — a flexible services delivery and funding model through our EaaS solution; through this partnership, we provide end-to-end funded solutions for companies across the entire project lifecycle. This would enable the companies to focus on their core businesses while meeting their sustainability goals without distraction.
Learn more about these and our flagship Energy-as-a-Service agreements by booking an appointment today or calling us at 1300 55 77 64.