eEnergy (EAAS ) announced today the launch of eSolar, its in-house solar PV offering, aiming to help organisations rapidly deploy on-site solar on a capital-free basis.
eEnergy initially entered the solar market as a result of noting increased demand from existing and new customers for onsite solar generation, driven by the surge in grid energy costs.
eEnergy said it has been preparing its solar offering for the past 6 months while securing 8.9 MW of orders at Heads of Terms, with an additional 425 KW now successfully completed or currently being installed. Given the advanced stage of discussions, the company said it expects 2/3rds of projects at Heads of Terms to convert to revenue in FY23.
The company's eSolar solution is end-to-end, covering the design, specification, installation, and ongoing maintenance, within a capital-free solution for the client. The offering builds on eEnergy's existing technology that seeks to cut down costs for clients and help them meet sustainability goals by using smart technology e.g. the company's MY ZeERO metering system.
The solar installations are funded either via eEnergy's capital-free Solar as a Service, within the existing SUSI Partners funding facility, or as a capital-free power purchase agreement (PPA) through a panel of funding partners. In either case, the funding profile aims to deliver cash neutrality for eEnergy during the installation phase, with the financial partner taking on the credit risk, and eEnergy receiving its cash profit at completion.
The company considers solar funding to be a well-established asset class with a number of competitive providers active in the UK market.
Harvey Sinclair, CEO, commented:
"The launch of eSolar is another exciting step on our journey to providing organisations and businesses across the UK and Ireland with an end to end net zero solution. In addition to eCharge, eSolar provides our customers with the very real ability to generate their own energy, giving them increased energy independence in the knowledge that they're using green and sustainable sources as well as achieving significant cost savings."
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With grid energy costs surging 300% in the past year, the implied cost of onsite solar now trades at more than a 50% discount. As a result, demand for solar from businesses is surging across Europe, especially as government energy cap initiatives have primarily focused on consumers. Energy providers have sought to capitalise on the new demand, with even oil and gas companies getting into the game.
eEnergy's offering integrates well into the company's existing theme of sustainable/smart energy, providing another way for its customers to access clean energy at an affordable price. The decision to implement an end-to-end capital-free solution ensures customers can begin reaping the benefits of lower energy prices as quickly as possible with minimum hassle. For businesses seeking to meet sustainability goals, this is an excellent solution.
For eEnergy, removing the capital expenditure barrier enables a fast and efficient turnaround, accelerating the sales cycle from pitch to installation. eEnergy forecasts installations from Heads of Terms agreement at c. 4-6 months. The company expects to convert 2/3rds of the 8.9 MW at Heads of Terms to revenue in FY23.
eSolar will also integrate well with eEnergy's My ZeERO smart metering system, launched in in 2021. The service is a monthly subscription, delivering AI-driven automated insights, and has seen high adoption by existing and new customers.
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