Many people are familiar with Software as a Service (SaaS) business models, in which software use is licensed out to users on a subscription basis. Popular examples include Office 365 and Dropbox. One company, Budderfly, has taken this idea and made it possible to make energy efficiency – including new HVAC systems – into a service. Their concept eliminates the complexity of selecting and designing lighting, HVAC, and refrigeration systems, and turns a capital expense into an operating decision.
Matthew Nemerson, Budderfly’s vice president of marketing, explained how Energy Efficiency as a Service works: Budderfly purchases the most efficient HVAC system, LED lights, and refrigeration, and installs it in a building (typically a medium-sized commercial office building, and often a smaller fast food restaurant or C-store). Budderfly then monitors, manages, and maintains the unit completely, bundling maintenance and repairs as needed into the single service. The building owner pays a monthly bill that is based on a reduction of their previous utility bill.