2025-07-18
Thinking about deploying energy storage for your business? Here are the 4 main ways it can work:
1. Owner Self-Investment
The company funds and owns the system outright.
Offers full control but requires significant upfront capital and has a long payback period. Best for cash-rich businesses prioritizing long-term ROI.
2. Energy Performance Contracting (EPC/ESCO Model)
A third-party (ESCO) funds, installs, & operates the system.
The ESCO profits by sharing savings from peak/off-peak price arbitrage with the host company. Zero upfront cost** for the business, making it the **most popular model.
3. Financing Lease + EPC
A financier (lessor) owns the asset; an ESCO operates it.
Reduces the ESCO's capital burden. The business pays lease fees, gains system ownership at the end of the term, and shares operational savings. Ideal for scaling multiple projects.
4. Pure Leasing/Rental
Short-term rental of storage equipment.
The business pays rent, keeps all operational savings, and returns the system later. Perfect for temporary needs(e.g., production spikes) or startups wanting lightweight operations.
✅ Key Takeaway: Each model fits different needs—assess your budget, risk tolerance, and operational goals!
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