(Article originally published on the SET Alliance website) How do as-a-service offerings generate and improve customer value? How can we generate systemic efficiency under the model? What are examples of success? In our latest webinar, we brought together a panel of avant-garde innovators practising EaaS around the globe.

The webinar “The Path to Efficiency-as-a-Service: A Guide to Creating Customer Value”, provides a deep dive into how companies can shift from offering more sustainable energy solutions under “as-a-Service” models instead of traditional one-off sales, driving customer value and new growth opportunities through subscription-based approaches. 

For providers this transition can be challenging, from tailoring value propositions to restructuring payments and developing capabilities for remote monitoring and operation of systems. This webinar explores key considerations to support the adoption and uptake of Efficiency-as-a-service models, sharing real-world examples, and highlighting positive impacts.

Strategically developing EaaS propositions

We are all familiar with service-based approaches by sector-leading companies such as Netflix and Spotify, however these models also hold an untapped potential for traditional hardware companies like those in industrial equipment manufacturing. Florian André, CEO and founder of P2S Management Consulting, specialising in the shift to service-based models, pointed out how the landscape of B2B product companies is evolving, with increasing numbers transitioning to subscription and as-a-service models to unlock new avenues for growth and customer engagement. 

However, this shift requires the selection of the right product vertical: certain products are more suited to subscription models than others, and companies must carefully assess which offerings align with customer needs. Florian emphasised that under as-a-service models different aspects of a product can be servitised, such as spare parts or specific components of a system. For example, in the case of injection moulding machines, often only the heart piece of the appliance is offered under a subscription model. Manufacturers of electric buses typically offer only the batteries as-a-service, as they represent the most expensive and technical piece of the vehicle. 

Aligning the provider’s revenue model with the client’s success metrics (e.g., charging per hour of uptime, per cubic metre of air, or per ton of cooling) is also key to ensuring the success of the offering. For example, Rolls-Royce shifted to charging airlines based on engine flying hours, rather than selling the engines outright.

Despite the challenges in creating effective subscription-based models, the financial and non-financial benefits are clear: providers adopting the approach often experience increased profitability, higher margins and revenue stability thanks to predictable cash flows over long-term contracts. By being able to forecast revenues more accurately, companies can improve their financial planning and make more informed investment decisions. 

When it comes to energy efficiency and environmental impacts of different systems such as cooling, heating and lighting, this model can also drive decarbonisation and contribute to the circular economy, as it incentivises providers to focus on efficiency and performance improvements over the long run, therefore encouraging resource efficiency over obsolescence. For customers, EaaS provides greater flexibility and predictable costs while reducing or eliminating the burden of upfront investments and managing equipment. The EaaS model can therefore create a “win-win” scenario, significantly benefiting the provider, customer and the environment. 

Cooling-as-a-Service, leading by example

Cooling in industrial refrigeration is a significant energy cost driver, with electricity consumption often comprising up to 65 percent of its lifecycle costs, according to Dawie Kriel, General Manager of Energy Partners Refrigeration, stressing the need and opportunity for more efficient systems. As higher upfront costs pose difficulties for users and refrigeration systems show high rates of degradation year over year, Cooling-as-a-Service (CaaS) represent an ideal solution where customers pay only as they consume, while the service provider is responsible for maintenance and ensuring an optimised amount of electricity per unit of cooling produced is used.

Indeed, Energy Partners leverages real-time data monitoring, as well as specialised cooling meters developed in-house, to continuously track system efficiency, alerting the team to any drop in performance before it becomes a significant cost issue. These systems help detect minor performance drops, such as changes in compressor efficiency or irregular temperature fluctuations, which can be addressed promptly to maintain optimal performance. Moreover, metres and digital tools also allow to collect readable and valuable data, another key element to effectively manage such technologies.

By providing customers with clear, real-time data on the status and efficiency of their cooling systems, Energy Partners builds trust and ensures that clients have full visibility into their system’s performance. Dawie highlighted that effective asset management extends the lifecycle of refrigeration equipment, reduces operational costs and resource usage, and enhances the overall reliability of cooling systems. Dawie refers to this win-win-win scenario as Sanpo-Yoshi, a Japanese expression meaning ‘Three-Way Satisfaction’, as the buyer, the seller, and society at large (and the planet) benefit from the model and sustainable cooling.

Dawie presented the Clover dairy factory project of Durban, which combines cleaner refrigeration with solar PV reducing electricity cost, and illustrates the potential of the CaaS model for energy-intensive equipment in large industrial facilities.

Circular Lighting-as-a-Service, the race for a lighter footprint

Using Circular Light-as-a-Service (CLaaS) is an effective way to enjoy high-quality lighting without operational hassles. One of ETAP’s standout projects involved the renovation of a large school building, where the company was able to reduce energy consumption by up to 70 percent. This was achieved through a combination of optimising the lighting design, using fewer luminaires, and refurbishing three-quarters of the existing equipment.

Dominiek Plancke, CEO of ETAP, showcased how ETAP’s approach to product design, which includes modular systems that are easily maintained, repaired, refurbished and upgraded under the contract, embraces circularity. The circular economy philosophy is embedded in the design of lighting systems, ensuring that appliances are made in a way that allows for any of the operations that can extend their lifecycle, thereby reducing the environmental footprint of each installation. Even seemingly minor upgrades, such as replacing light modules rather than entire luminaires, contribute to achieving the company’s goal of creating “endless lighting” solutions that deliver high performance over decades.

Dominiek detailed ETAP’s comprehensive approach to lighting projects, which includes an initial assessment, optimised design, seamless renovation, and ongoing maintenance to ensure tailored and efficient solutions for clients. This process not only maximises energy savings and lighting quality but also offers flexible end-of-life options that align with circular economy principles.

Finally, Dominiek underlined the business case for LaaS by stressing the importance of considering Total Cost of Ownership (TCO), which was also underscored by Dawie from Energy Partners in regards to cooling equipment. With TCO as a core metric, ETAP helps clients understand the long-term value of investing in circular solutions. This not only results in cost savings but also mitigates operational risks associated with outdated lighting technologies and regulatory compliance, particularly as policy such as within the European Union will continue to enforce stricter energy efficiency standards to achieve related targets.

Enhancing Efficiency by optimising operations

Dr. Elvira Rakova concluded the webinar with an in-depth exploration of Compressed Air systems, highlighting the significant potential for energy savings in industrial settings. Compressed air is often a critical yet inefficient utility, making up nearly 20 percent of electricity consumption in many factories. 

While the traditional approach focuses mainly on optimising generation, Elvira argued that a holistic view—including generation, distribution, and end-use efficiency—is essential to unlock substantial energy savings. She also highlighted the cultural shift needed for industries to treat compressed air as a managed asset rather than a secondary utility, noting that a proactive management approach can significantly reduce costs and environmental impact.

A case study from a Moroccan steel manufacturer illustrated how these strategies reduced energy consumption by 25 percent through optimised system use and predictive maintenance. This highlights how, in many cases with compressed air, the most significant savings can come not from replacing equipment but from optimising how existing systems are used, such as reducing leaks and maintaining consistent pressure levels.

According to Elvira’s experience, inefficiencies can be reduced by two-thirds with the right measures targeting inefficiencies at every stage, made possible thanks to digital platforms such as Direktin’s Compressed Air Efficiency-as-a-Service tool.

The platform enhances the efficiency of compressed air systems by connecting stakeholders like auditors, equipment suppliers, and end users. It facilitates real-time data collection and analysis, offering actionable insights to identify inefficiencies and optimise system performance. It supports the entire lifecycle of energy efficiency projects—from initial audits to ongoing monitoring—ensuring transparency and coordination among all parties. A key feature is its decision support system, using predictive analytics to recommend maintenance actions before failures occur, while future integration with blockchain could simplify carbon credit verification and attract investment.

Click here to access the full recording of the event and the speakers’ presentations. You can find all past events of the SET Alliance on the resources page. To stay informed about the next events, you can sign up for our newsletter below!