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Financing & Contracts · Week 2 of 52

What is Energy-as-a-Service (EaaS)? A plain-English guide for business owners

Energy-as-a-Service explained without jargon: who owns the equipment, what you pay, what happens when something breaks, and how it compares with buying solar outright.

Energy-as-a-Service is the model behind most large solar projects in Africa today, but the name hides a simple idea: somebody else buys the power plant and you pay for the power. Here is how it works when Frontières Bay is the somebody else.

Key facts

  • Frontières Bay finances, installs, owns, insures and maintains the solar, battery and cold storage at your site.
  • You pay one fixed monthly fee under a 5–10 year contract — set 20–30% below your current diesel plus grid spend.
  • Maintenance, monitoring, repairs and replacements are included; if it isn't producing, you aren't paying for nothing.
  • At the end of the term you renew, upgrade or take the system over.

Who owns what

Under Energy-as-a-Service the equipment stays on Frontières Bay's balance sheet. That is why we carry insurance, maintenance and monitoring: the asset is ours to protect. Your accountant sees an operating expense — a monthly fee — rather than a capital purchase and a depreciation schedule.

Contrast that with buying outright: you own the panels and batteries, you pay for repairs, and you carry the risk of a battery that fails in year six.

What the monthly fee covers

  • Power: solar by day, battery by night, grid or gas backup where needed
  • Cold storage: 10–50 tonne rooms at your set temperatures, if your site needs them
  • Monitoring: 24/7 output and temperature tracking with alarms to your phone
  • Maintenance: every service, repair and part, including battery replacement
  • A monthly energy and cold chain report you can show buyers and lenders

Is it right for you?

It fits when you run a cold load or heavy motor load most of the day, spend roughly US$2,000 a month or more on energy, have been trading three years or more, and have roof or land for the array. Exporters earning US dollars qualify from a single site; local-currency businesses qualify from about US$1M of equipment, with currency protections.

Smaller sites are often better served by a direct purchase designed and commissioned by us, or by our portable solar products.

See whether your site qualifies — free energy audit.

Talk to Frontières Bay

Frequently asked

Is Energy-as-a-Service the same as a PPA?

Close. A power purchase agreement charges per kWh; our Energy-as-a-Service fee is fixed monthly and can include cold storage and monitoring, which a PPA usually doesn't.

What if we want to end the contract early?

Contracts run 5–10 years. Early termination and buy-out terms are set in the agreement before signing, so there are no surprises.

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