Editor’s note: FM Perspectives are industry op-eds. The views expressed are the authors’ and do not necessarily reflect those of Facilities Management Advisor.
National power consumption is projected to set new records in both 2025 and 2026, according to the U.S. Energy Information Administration (EIA), surpassing an all-time high reached just last year. At the same time, government support for clean energy is shifting: The U.S. Department of Energy plans to cancel more than $13 billion in funds that had been pledged to subsidize wind, solar, batteries, and electric vehicles. The confluence of rising demand and decreasing federal support puts businesses and facilities managers under pressure like never before.
Hoping for energy subsidies or incentives from federal or state agencies is no longer a reliable strategy—which means it’s time to pivot. Companies must do their own research and turn to alternative financing models such as Energy-as-a-Service (EaaS) to implement efficiency upgrades without the burden of heavy upfront costs.
Many companies are already pursuing this course: The global EaaS industry was valued at more than $74 billion in 2024 and is projected to more than double by 2030. As energy prices rise, companies can no longer afford to delay critical upgrades. But in this uncertain policy environment, waiting for policy clarity or incentives that may never materialize is not a viable strategy. Exploring alternatives such as EaaS partnerships is an operational imperative as rising prices are directly straining budgets.
Energy efficiency is no longer simply a “nice-to-have,” nor is it only for organizations with lofty sustainability goals. In a recent Energy Efficiency Movement survey, 58% of companies said that higher energy costs now pose a moderate or major threat to profitability, up from 53% just two years earlier. In a 2025 IEA survey of 1,000 industrial firms in 14 countries, four out of five respondents said energy efficiency is now central to maintaining their competitive edge.
Beyond energy bills, deferred maintenance on older systems drive up repair costs and increase the risk of breakdowns. Across U.S. healthcare facilities, an estimated 41% of maintenance projects, including HVAC, plumbing, and life safety systems, remain unaddressed, creating a $243 billion national backlog. Costs from inefficiencies mount over time, and businesses that delay upgrades often face steeper bills down the line.
Companies understand the urgency, but financial burdens often limit their ability to execute. That’s because traditional efficiency upgrades—from LED lighting and HVAC replacements to boilers, chillers, and smart controls—demand significant upfront capital. However, many don’t understand that alternatives exist. For instance, EaaS providers offer predictable, subscription-like models that tie payments directly to measurable energy savings performance. This structure allows companies to have providers cover the upfront investment—and if the savings fall through, the company is not responsible for the difference.
This model not only removes the financial barrier but also reduces risk. Companies can see the returns before making significant investment. And the returns are significant: One Eaas case study found that a mix of infrastructure upgrades, equipment optimization, and ongoing commissioning, monitoring, and maintenance services led to a 50% reduction in consumption, which created substantial cost savings over time.
The window for existing federal incentives is closing quickly, and companies need to be thinking now about how they will continue efficiency efforts once it shuts. Current rules require projects to begin construction by mid-2026 or be operational by the end of 2027 to qualify for key tax credits. After those deadlines, the value of credits declines or disappears altogether. And with legislative priorities changing by the day, even those timelines could be in jeopardy. Delaying efficiency projects or hoping for the best from these incentives is not a winning strategy. It’s a way to absorb higher energy costs and increase exposure to market unpredictability.
With energy costs rising, businesses can no longer afford to wait for uncertain policy changes. By upgrading efficiency, adding renewables, or using flexible financing, organizations can cut operational risk and lower costs. To build long-term resilience, organizations need to take energy efficiency into their own hands, pursuing alternatives such as EaaS partnerships. Strategic moves today are the only way to guarantee survival during unpredictable times.
Bretton DeNomme is the chief commercial officer at net-zero energy solutions provider Ecosave, where he is responsible for all aspects of business development, including strategic third-party business partnerships, go-to-market strategies, and revenue generation.