At Budderfly, we work with thousands of restaurants across the U.S. to improve their energy efficiency with cutting-edge technology and upgraded energy infrastructure. In the post, we’re putting our expertise to use to answer some of the most common questions we hear about energy as a service.
What is energy as a service?
The energy-as-a-service (EaaS) model makes energy efficiency more accessible for businesses by providing upgraded energy infrastructure and technology without upfront costs. An EaaS provider will purchase and install high efficiency equipment (such as new HVAC systems, LED lighting, and refrigeration controls), renewables like on-site solar panels, technologies like smart thermostats and metering, and water conservation solutions. These all contribute to reducing the energy consumption of a facility, resulting in cost savings, smoother operations, and improved sustainability. An EaaS will also provide ongoing energy management to ensure outcomes for customers, from cutting-edge software that monitors and optimizes equipment performance to regular maintenance and repairs of equipment.
What is the energy as a service financing model?
The energy as a service (EaaS) financing model begins with the EaaS provider typically installing energy equipment upgrades using their own capital. This allows the customer to use less energy and reduce their monthly utility bills without having to spend any of their own money out of pocket. Then, the EaaS will take a share of the customer’s utility bill savings each month to help pay back for the installed upgrades. This way, the customer never has to use any capital to get upgrades, and both the customer and EaaS provider benefit from savings achieved by the newly installed technologies.
How does an energy service company work?
An energy service company (ESCO) is similar to an EaaS provider, but with a few key differences. ESCOs tend to have different types of customers. Traditional ESCOs generally work only with customers in municipal and state governments, universities, schools, and hospitals. EaaS providers, on the other hand, work with these customers, too, but also partner with more corporate customers with large building portfolios such as franchises. Also, ESCOs don’t necessarily provide ongoing energy management after the initial installation of equipment, while an EaaS provider typically does offer more ongoing management to optimize ongoing performance.
What is the meaning of SaaS energy?
SaaS stands for software as a service. SaaS for energy can refer to any type of software platform that helps manage, measure, or control energy consumption, typically paid for with a subscription model. The SaaS model is similar to the EaaS model, and an EaaS agreement will often include software at no additional cost, such as the Budderfly Customer Portal that tracks and analyzes energy performance.
What's the difference between EAAS and ESCO?
There are a few differences between an EaaS and an ESCO. ESCOs usually work with customers with large, single locations while EaaS providers have scalable solutions that allow them to also work with corporate customers with large building portfolios. Every ESCP and EaaS provider is different, though, and the specifics of how each model differs depends on what each company offers. Budderfly, for example, is an EaaS provider that is different from both ESCOs and other EaaS companies. Budderfly has a one-of-a-kind model particularly targeting the mid-market, which includes small to mid-sized commercial and non-industrial facilities.
What are examples of energy as a service?
An example of energy as a service is Budderfly’s unique business model. Budderfly invests 100% of the capital for energy upgrades, making continual changes and investments that add up to real change and outcomes for customers. Budderfly is America’s fastest growing EaaS and was one of Fast Comany’s Most Innovative Companies of 2025, listed as the #2 most innovative energy company in the world.
What are the benefits of energy as a service?
The benefits of energy as a service include getting new energy infrastructure that lowers energy consumption, reduces utility bills, and decreases your carbon footprint. EaaS provides this while still allowing business owners to preserve capital for more pressing business needs. Another benefit is streamlined energy management. EaaS technologies can identify waste, adjust activity in real time to create efficiency, shift energy consumption to the most cost-effective times of the day, and provide real-time alerts for easy solving of any issues. An EaaS like Budderfly also gives customers access to a customer portal that provides deep operational insights into energy consumption, cost savings, and more.
Is energy as a service the same as power purchase agreement?
No, energy as a service is not the same as a power purchase agreement (PPA). A PPA is a long-term contract between a utility or renewable energy provider and a customer. These contracts involve the direct sale of electricity over certain periods of time. An EaaS provider does not sell electricity directly. Instead, it will manage and optimize the energy that its customers use in order to lower utility costs and improve sustainability. An EaaS company may provide renewable energy through solar panel or geothermal installation, but these assets will typically be on-site at a customer location, not purchased as energy from an outside renewable source company.
What is a microgrid?
A microgrid is a network of connected loads—the amount of electricity consumed by customers—and distributed energy resources (DERs)— small-scale and localized electricity generators connected to the system, such as rooftop solar, wind turbines, and battery storage. They are clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid and are typically managed through a central controller that coordinates DERs, balances electrical loads, and is responsible for connection of the microgrid to the main grid. (Source: U.S. Department of Energy)
What is ESS in energy?
ESS stands for energy storage system, and it’s an advanced technology that stores electrical energy using a system of high-performance batteries. The stored energy can then be used as a reliable backup power solution for commercial businesses during energy emergencies.
To learn more about energy as a service and how you can join over 7,000 businesses already saving energy by partnering with Budderfly, contact us today.