Most industrial facilities face the same obstacle when it comes to decarbonization: the capital cost of upgrading heating and energy systems is too high to clear the CapEx bar. In this March 2024 session, Aurora Fernandez and Mike Savage from Renew Energy Partners walk through how their Energy-as-a-Service model removes that barrier entirely, funding, installing, and operating clean energy projects on behalf of building owners, with repayment structured through the savings the projects generate. With over $200M deployed across more than 20,000 energy assets in the US — and a $300M fourth fund backed by Mitsubishi Hitachi Capital announced at the time of recording — Renew have the track record to back it up. Practical, jargon-light, and directly relevant to suppliers managing heat-heavy facilities.

Key takeaways

• The core barrier to decarbonization is capital, not intention. High upfront costs, limited internal resource, and volatile energy markets are the three challenges Renew consistently encounter. The EaaS model is built specifically to address all three.
• Renew funds, owns, and operates the project, suppliers pay through savings. Under a Master Service Agreement, Renew invests in the energy upgrade, then shares a portion of the verified savings with the facility owner over a 5–15 year term. The arrangement sits off the balance sheet, treated as an operational expense rather than a capital commitment.
• Savings are measured and verified, not estimated. Renew puts measurement and verification protocols in place for every project. They are only paid back against savings they can demonstrate, not savings they project.
• The model covers energy efficiency and on-site renewable generation. Energy Service Agreements cover efficiency upgrades, HVAC, lighting, boilers, compressed air systems. Power Purchase Agreements cover on-site generation such as solar. Both can be combined into a single payment structure.
• Two manufacturing case studies illustrate what this looks like in practice. A combined heat and power plant delivered to a manufacturer facing power quality issues cut carbon emissions by 1,800 metric tons annually and now produces 20 million kWh per year. A second project with an aerospace manufacturer identified 10+ conservation measures across the site, reducing operational costs by $150,000 per year and cutting carbon by 1,600 metric tons annually.
• Engagement starts with an audit, at no cost to the supplier. Renew’s process begins with a desktop or on-site assessment of energy consumption, followed by a Memorandum of Understanding phase in which they design the project in detail — all before any capital commitment from the facility owner. A break-up fee applies only if the owner opts out after that stage.
• US federal incentives are available and worth factoring in. As of March 2024, Investment Tax Credits for cogeneration (CHP) equipment were due to expire at year end, and incentives were in place for geothermal and battery storage projects under the Inflation Reduction Act. Renew can help clients access these as part of their service. Note: the status of these incentives may have changed since this webinar was recorded.