Top 5 Things You Need to Know About Capex Neutral Power Company

Top 5 Things You Need to Know About Capex Neutral Power Company

Are you looking for ways to increase the energy efficiency at your facilities? Do you want to install LED lighting, solar systems, or other energy-generating equipment? Are budgetary concerns preventing you from making a decision? Well, I can’t let you live in distress anymore. I’m going to reveal a solid plan to achieve your energy goals. All you need to do that is to collaborate with a Capex Neutral Power Company. 

 

Now the first question that would be running across your mind is what CapEx is and what it has to do with power companies, right? Well, I understand your concern pretty nicely here, so I’m going to disclose the desired information about Capex Neutral Power company layer by layer, ok? Let’s see first – 

 

What is CapEx?

 

CapEx is the abbreviation for Capital Expenditure. It can be defined as a sum of money your company invests in fixed assets to gain profits in the long run. The CapEx may include the initial cost involved in purchasing new equipment as well as its improvement and maintenance costs. Generally, it is considered a well-thought investment that provides a high ROI (Return on Investment) to the company down the line. 

 

A few examples of CapEx include:

 

1 – Electrical equipment

 

2 – Commercial vehicles 

 

3 – Building improvements 

 

And the company that offers you energy resources in a way that reduces your monthly expenses on energy and increases cost savings is called Capex Neutral Power company, understood?

 

What is OpEx?

 

OpEx is the abbreviation for Operating Expenditure. It can be defined as the expenses your company does to keep your business running day to day. It includes office supplies like internet connectivity and subscription services like Energy-as-a-service (Haas). 

 

A few examples of OpEx include:

 

1 – Utility expenses 

 

2 – Employees’ salaries 

 

3 – Service agreements 

 

Now that you know what CapEx and OpEx are, it will be easy for you to understand what CapEx neutral power companies can do for you, ok?

 

How can CapEx Neutral Power companies help you meet your energy needs?

 

Do you know it is pretty difficult to keep your energy consumption low while manufacturing products or providing services at your facilities, right? And things become even more complicated when you are asked to keep your energy consumption low during peak load times. In such cases, you are left with only two options to adopt. Either you reduce your energy usage by turning off the lights, raising your AC’s temperature, or shifting your energy requirements to another electrical equipment. Since the former option is not that viable as it may affect your employee’s productivity, you can give serious consideration to the latter one. 

 

Some of the energy supplying companies offer “Eaas” solutions to their clients. Here Eaas means Energy-as-a-service, which is a monthly subscription agreement for using efficient energy technologies at your company or organization. This service generally includes the usage of LED lighting, solar systems, energy storage, and power monitoring. Do you know what the USP of this service is? You don’t need to pay system cost, installation charges, and maintenance fees at all. Everything will be covered in your subscription. And do you know what’s the cherry on top? It will also manage your available utility incentives. 

 

Apart from all this, what’s even more amazing to know is that the subscription cost for Eaas won’t show in your balance sheet as debt since it will come under your operating expenses. And the day when you will avail Energy-as-a-service, I guarantee you can see immediate cash from the first day itself.

 

What are the benefits of availing Eaas by CapEx neutral power companies?

 

1 – Maintenance-free outsourcing 

 

When you take an Eaas subscription, you don’t have to be concerned about maintenance issues at all. Be it parts, problems or anything, energy supplying companies will take care of all. What’s more, they don’t charge you as well when maintenance requirements crop up. They take complete ownership to fix the issue and prevent you from spending your precious time and energy in getting the machine repaired or replaced. 

 

2 – Increased productivity 

 

The next advantage of Eaas is that the productivity of your employees improves to a great extent. Deploying the latest electrical technologies at your production facility or organization also helps you increase your employee’s safety by increasing the intensity of light in under-lit places. 

 

3 – Easy retrofitting

 

The budgetary issues might prevent you from installing necessary lights or solar projects at your company or organization. But when you see cash flow from day one after taking an Eaas subscription, you are more likely to afford the expenses to complete those projects. And once you have realized its benefits, you will surely replicate the idea at your other companies as well. 

 

The final note 

 

With so many benefits of partnering with CapEx neutral power companies, it’s the right time for you to take the plunge and opt for an Eaas subscription.