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Innovation has been the driving force of change in the energy industry in recent years. While the demand for change is strong, the challenge of paying for new energy technology remains formidable.
In the spirit of change, financing mechanisms have been equally innovative, helping utilities, building owners and consumers invest in technologies such as photovoltaics, wind power and electric cars, despite the upfront costs.
One of those innovative financing mechanisms, energy efficiency as a service (EEaaS), is helping building owners invest in new technology to reduce energy use. Typically, a building owner enters into an agreement with a provider that pays for energy efficiency retrofits to the building. The building owner does not pay any upfront costs for the improvements. Instead, payments are made in installments over a defined period of time. Payments are covered by the savings in energy costs realized from the improvements.