Renewable Energy-as-a-Service Market to Grow with a CAGR of 11.19% through 2028
Increasing demand for renewable energy and declining
cost of renewable energy technologies are likely to drive the market in the
forecast period.
According to TechSci Research report, “Renewable
Energy-as-a-Service Market – Global Industry Size, Share,
Trends, Competition Forecast & Opportunities, 2028”, the Global
Renewable Energy-as-a-Service Market stood at USD 12.08 billion in 2022 and is
anticipated to grow with a CAGR of 11.19% in the forecast period.One of the
primary drivers fueling the growth of the global REaaS market is the
significant cost savings and financial benefits it offers to consumers,
businesses, and organizations. Traditional energy systems, often reliant on
fossil fuels, come with substantial operational and maintenance expenses.
Additionally, the initial capital investment required to install renewable
energy infrastructure, such as solar panels or wind turbines, can be
prohibitively high for many potential users. REaaS addresses these cost
barriers by providing an alternative model where customers can access renewable
energy without the burden of upfront capital expenditures or ongoing
maintenance costs. Instead, they pay for the energy services provided, often on
a subscription or pay-as-you-go basis. This financial flexibility enables a
broader range of entities to embrace clean energy solutions. Moreover, REaaS
agreements frequently include performance guarantees, ensuring that the
renewable energy systems operate efficiently and deliver consistent energy
output. As a result, customers can predict and manage their energy expenses
more effectively, mitigating the risks associated with fluctuating energy
prices.
The financial attractiveness of REaaS is further
enhanced by declining costs of renewable energy technologies, making it
increasingly competitive with conventional fossil fuels. As businesses and
individuals seek to reduce energy costs and enhance their financial stability,
the affordability and cost-saving potential of REaaS solutions continue to
drive market growth.
Environmental sustainability and the pressing need to
combat climate change are powerful drivers behind the global REaaS market. The
world is grappling with the consequences of carbon emissions from fossil fuels,
including rising global temperatures, extreme weather events, and environmental
degradation. As a result, there is a growing commitment from governments,
corporations, and individuals to reduce their carbon footprint and transition
to cleaner, more sustainable energy sources. REaaS plays a pivotal role in this
transition by facilitating access to renewable energy, which generates
electricity with minimal or no greenhouse gas emissions. Solar, wind,
hydropower, and other renewable sources offer a clean and eco-friendly
alternative to conventional fossil fuels, significantly reducing the carbon
impact of energy generation. Many countries and regions have set ambitious
renewable energy targets and emissions reduction goals as part of their
commitment to mitigating climate change. These targets often include specific
mandates for the adoption of renewable energy technologies. REaaS aligns with
these goals by providing a practical and scalable means of meeting renewable
energy targets. Moreover, corporations are increasingly recognizing the
importance of corporate social responsibility (CSR) and environmental, social,
and governance (ESG) commitments. Embracing REaaS not only helps them achieve
their sustainability objectives but also enhances their brand image and appeals
to environmentally conscious consumers and investors.
In summary, the global REaaS market is driven by the
compelling financial benefits it offers, including cost savings and predictable
energy expenses, as well as its alignment with environmental sustainability and
carbon reduction goals. These drivers collectively contribute to the expanding
adoption of REaaS as a pivotal component of the global transition to cleaner
and more environmentally friendly energy solutions.
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through XX Pages and an in-depth TOC on "Renewable Energy-as-a-Service Market.”
The Global Renewable Energy-as-a-Service Market is
segmented into type, end user and region.
Based on type, The Energy Supply Services segment held
the largest market share in 2022. Energy Supply Services allow customers to
access renewable energy without the need for substantial upfront capital
investments. This significantly reduces the financial barriers that typically
deter businesses, homeowners, and organizations from adopting renewable energy
solutions. Instead of bearing the full cost of purchasing and installing
renewable energy systems, customers can leverage the expertise and resources of
REaaS providers. Energy Supply Services
typically operate on a predictable pricing model. Customers enter into
long-term agreements with fixed or predictable energy costs. This
predictability allows businesses to budget effectively and mitigate the risks
associated with fluctuating energy prices, making renewable energy a more
financially attractive option. REaaS providers are experts in designing,
installing, and managing renewable energy systems. They have the technical
knowledge and experience required to optimize the performance of these systems,
ensuring they operate efficiently and generate the expected energy output.
Customers benefit from this expertise without having to acquire it themselves.
With Energy Supply Services, customers are relieved of the responsibility for
operating and maintaining renewable energy systems. REaaS providers handle
routine maintenance, repairs, and system monitoring. This minimizes operational
disruptions and ensures that renewable energy assets remain in optimal working
condition throughout the contract period. Energy Supply Services are often
scalable to meet the specific energy needs of customers, whether they are
homeowners, businesses, or industrial facilities.
Based on end user, The Commercial segment held the
largest market share in 2022. Commercial establishments, including office
buildings, retail spaces, hotels, and factories, typically have higher energy
consumption compared to residential users. This higher energy intensity results
in larger energy bills and a stronger financial incentive to seek ways to
reduce energy costs. The commercial sector is highly sensitive to operating
expenses, including energy costs. REaaS solutions enable commercial entities to
access renewable energy without the need for significant upfront capital
investments. Instead, they can shift to clean energy with predictable and often
cost-effective payment structures. This financial flexibility is appealing to
businesses looking to lower operational costs and improve profitability. Many
businesses, driven by CSR objectives, are committed to reducing their
environmental impact and carbon footprint. Transitioning to renewable energy
aligns with these sustainability goals and enhances a company's reputation as
an environmentally responsible entity. It can also help meet regulatory
requirements related to sustainability reporting and compliance with emissions
reduction targets. Adopting REaaS solutions often goes hand in hand with energy
efficiency measures. Commercial entities seek to optimize their energy use to
reduce waste and enhance competitiveness. Integrating renewable energy sources
like solar panels with energy-efficient technologies allows businesses to
achieve a more sustainable and cost-efficient energy mix. Commercial properties
often offer more significant rooftop space, land, or building footprint for
renewable energy installations. This scale allows for larger and more impactful
renewable energy projects. Businesses can generate substantial amounts of clean
energy, potentially even producing surplus energy that can be sold back to the
grid or used to power neighboring facilities. Many commercial property owners
are open to long-term lease agreements with REaaS providers. These agreements
allow property owners to monetize underutilized space while providing the REaaS
provider with a stable location for renewable energy installations.
Major companies operating in the Global Renewable
Energy-as-a-Service Market are:
- ENGIE Group
- Enel X S.r.l.
- Schneider Electric SE
- Ameresco Inc
- Siemens AG
- General Electric Company
- Veolia Environnement S.A.
- Honeywell International Inc
- Centrica Plc
- Alpiq Group
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“The Global Renewable Energy-as-a-Service market is
expected to rise in the upcoming years and register a significant CAGR during
the forecast period. The key driver behind the global Renewable
Energy-as-a-Service (REaaS) market is the pursuit of cost efficiency and
sustainability. REaaS empowers businesses to access clean, renewable energy
without hefty upfront investments. By shifting to REaaS, companies can reduce
energy costs, enhance financial predictability, and align with sustainability
goals. This model offers an efficient path to reducing carbon footprints and showcases
corporate responsibility. Furthermore, it enables businesses to navigate energy
market fluctuations while benefiting from expert maintenance and performance
guarantees. In essence, REaaS allows enterprises to bolster both their bottom
line and environmental stewardship, making it a compelling choice for modern
businesses. Therefore, the market of
Renewable Energy-as-a-Service is expected to boost in the upcoming years.,”
said Mr. Karan Chechi, Research Director with TechSci Research, a research-based
management consulting firm.
“Renewable Energy-as-a-Service Market - Global
Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By
Type (Energy Supply Services, Maintenance & Operation, Energy Efficiency
& Optimization and Others), By End
User (Residential, Commercial, Industrial), By Region, By Competition”, has evaluated
the future growth potential of Global Renewable Energy-as-a-Service Market and
provides statistics & information on market size, structure and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision-makers make sound investment decisions., The report also
identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in the Global Renewable Energy-as-a-Service
Market.
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