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Secure your Clean Energy Future with Cost competitive On-Site Energy as a Service (EaaS)

Grid modernization proves to be a top obstacle for renewable energy deployment

Expanding and upgrading the United States electric grid is one of the most essential yet neglected roadblocks for the clean energy transition. Most of the aging electricity grid infrastructure was built in the 1960s and designed for fossil fuel power plants – not intermittent and decentralized renewable energy. Oftentimes, the highest solar and wind energy potential is located in sparsely populated areas with low-cost land (such as the deserts of Arizona for solar or the Midwest for wind), making it very expensive to transmit clean energy across vast distances to urban areas.

An estimated $700 billion investment is needed to double the high-voltage transmission lines (200,000 miles) for the U.S. to become 100% renewable by 2030, thus bringing the total price of grid decarbonization to $4.5 trillion. Constructing new transmission lines is a long and arduous siting and permitting process, taking, on average, ten years to be built - delaying the crucial expansion of renewable energy deployment. Projects that cross state borders are even more complicated, with additional coordination required between in-state and out-of-state developers and challenging-to-obtain agreements amongst multiple stakeholders with competing interests (i.e., utilities, regulators, and landowners).

Energy prices are skyrocketing and are predicted to continue rising

Last year, the U.S. Department of Energy allocated $12.5 billion for the "Building a Better Grid" initiative, and the Inflation Reduction Act (IRA) is providing $5 billion in loans for grid infrastructure upgrades. Yet, this investment still falls short of the estimated $700 billion required to meet climate goals. This gap in grid modernization funding is, unfortunately, being passed onto the consumer through utility price hikes and surcharges, with energy prices skyrocketing 8.7% in 2022 alone, and up 17% in the last 12 months in the industrial sector. Electricity rates are not looking to slow down anytime soon, with energy costs predicted to rise another 10% by the end of 2023.

One way to control and reduce energy prices is by investing in domestic renewable energy generation and improving the grid’s failing transmission lines. With the IRA’s record-breaking funding of renewable energy projects, an unintended consequence has been escalated curtailment rates and grid congestion costs, with congestion costs doubling from $2.7 billion in 2019 to $7.2 billion in 2021. Berkeley Lab researchers found that average interconnection costs surged 728% to $240/kW in 2022 from $29/kW in 2020 measured over a two year period. These high transmission and distribution (T&D) charges, interconnection delays, and regulatory uncertainty have shot up PPA (power purchase agreement) costs by 29% since 2021, leaving businesses unsure of how to invest in renewables at an affordable price.

Lock-in low electricity rates now with on-site Energy as a Service (EaaS)

Amidst the unstable global energy market, businesses can establish price certainty by locking in a low electricity rate now with on-site Energy as a Service (EaaS). Compared to utility-scale wind and solar PPAs, on-site EaaS can be deployed much more rapidly and cost competitively. With on-site EaaS, businesses are protected against ever-increasing and unstable utility price hikes with a long-term contract (15-25 years) at an agreed-upon electricity price. This cost-competitive solution allows forward-thinking businesses to reap the benefits of onsite generated zero carbon energy supply, increasing profits, and reducing operating expenses with no added risk.

EaaS is outcome-based with de-risked performance and price that enables accurate budgeting of energy expenses. Instead of waiting years for an ROI, with EaaS, businesses instantaneously benefit from guaranteed clean energy and maintenance savings without any loan or on-balance sheet financing required. By simply paying a monthly subscription for renewable energy (similar to a utility bill), companies can meet their decarbonization goals without paying any upfront or O&M costs and are free to spend that extra capital on their core business practices.

Achieve sustainability goals without any upfront investment

Avoid the added costs and unpredictability of a PPA and rapidly deploy resilient and cost-competitive on-site renewable energy without any upfront investment or maintenance worries. By partnering with a top-tier EaaS provider like GreenStruxure, our energy specialists will design, build, operate, and maintain a cutting-edge renewable microgrid at your company’s location. Maintain control over your energy supply and cost with our flexible and scalable EaaS business model, empowering you to achieve your sustainability goals risk-free with guaranteed clean energy competitively priced reflected in your monthly service subscription.

Act now to secure your energy supply and bypass the high interconnection costs, delays, and rising electricity prices with on-site EaaS. Contact us today to embark on a greener and more cost-efficient energy future!



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