Let’s not pretend energy costs haven’t become one of the most nerve-wracking parts of running a business. Whether you’re overseeing a manufacturing plant or managing multiple office buildings, your utility bills are more than just a line item—they’re a constant source of stress, second-guessing, and budgetary tug-of-war.
That’s probably why you’ve started hearing terms like commercial energy procurement and EaaS—short for “Energy-as-a-Service”—thrown around in conversations about smarter energy strategies. But when it comes down to commercial energy procurement vs EaaS, which one actually makes more sense?
You’d think the answer would be simple, but (as with most things energy-related) it depends. It depends on how your business operates, what kind of control you want, and how comfortable you are letting someone else steer the ship when it comes to your energy use.
Let’s unpack this in a way that won’t make your eyes glaze over.
So, what exactly is commercial energy procurement?
Think of it as shopping for electricity or natural gas the way you might shop around for the best supplier of materials or internet service. With commercial energy procurement, you get to pick your energy provider, negotiate rates, and lock in contracts based on market conditions. You’re in the driver’s seat.
It’s kind of like booking your own flights and hotels instead of using a travel agent. You do the research, crunch the numbers, and hope your timing works out. And just like booking that flight too early—or too late—you can end up overpaying or locking yourself into a deal that ages poorly.
But here’s the appeal: control. Procurement gives you autonomy. You’re making decisions based on your budget, risk tolerance, and forecasted usage. You can hedge your bets, choose fixed or variable rates, and manage demand response if you’re savvy enough.
This route tends to work well for:
- Companies with internal energy managers
- Businesses that value contractual flexibility
- Organizations that want visibility and transparency
But let’s be honest—there’s a learning curve. And time. And effort. And spreadsheets. If your core business doesn’t involve energy strategy, this might start to feel like a second full-time job.
And EaaS? Sounds futuristic. What’s the catch?
EaaS flips the whole model. Instead of buying electricity or gas directly, you’re paying for an outcome—reliable energy performance, lower consumption, or both. Think of it like leasing a fully loaded car instead of buying one and figuring out the maintenance later.
An EaaS provider takes over the infrastructure, optimization, and monitoring. You don’t own the upgrades—they do. You don’t worry about energy market volatility—they absorb that. You simply pay a regular fee, and they ensure your energy ecosystem runs smoothly, often with better efficiency than you could manage in-house.
And get this—they might even install solar panels, energy storage systems, or smart controls on their dime. You’re not fronting the capital. You’re not managing contractors. You’re not negotiating PPAs or utility rebates. That’s their world.
The appeal here is obvious:
- Predictable operating costs
- No upfront capital
- Hands-off management
- Energy upgrades without risk
Of course, there’s a tradeoff. You give up control. You’re relying on a third party to deliver promised results. And depending on the terms, you could be locked into a long contract—10, 15, sometimes even 20 years.
So, while it’s convenient and future-focused, EaaS isn’t exactly one-size-fits-all.
Let’s talk money—because that’s the heart of it
When comparing commercial energy procurement vs EaaS, it’s impossible to ignore the financial dynamics.
Procurement often feels cheaper at first. You negotiate your rate and think, “Okay, this is what we’ll pay per kilowatt-hour.” You’re laser-focused on the price of energy. But what about the cost of inefficiency? Outdated HVAC systems, poor load management, or lighting that guzzles more power than it should?
EaaS doesn’t just focus on your energy price—it addresses your entire energy profile. Your efficiency. Your infrastructure. Your demand spikes. And those things? They cost you more than you realize.
Sure, your EaaS monthly payment might look higher than your procured energy contract. But it could be hiding huge long-term value in energy savings, improved asset performance, and zero capital expenditures. It’s a different financial lens—one that values stability, modernization, and outsourcing risk.
Who’s steering the ship—do you want the wheel or a captain?
Here’s where it gets philosophical.
With procurement, you’re in control. You make the calls. You respond to market shifts. But when things go south—say, energy prices spike or your building’s cooling system tanks—you’re also the one on the hook.
With EaaS, you hand over the keys. You trust your provider to optimize systems, manage risk, and keep your energy costs within a predictable range. You become more of a passenger—but ideally, a well-served one in first class.
Some companies love the autonomy. Others just want someone to take the energy stress off their plate.
Neither is wrong—it’s just a matter of how much control, risk, and responsibility you’re willing to juggle.
A quick side note: technology is tilting the scales
We can’t ignore the role tech plays in this conversation.
Smart meters, AI-powered building analytics, energy storage—these tools can supercharge both strategies. But they’re particularly powerful when bundled inside an EaaS model. Why? Because most small-to-midsize businesses can’t afford these tools on their own, or they can’t extract their full value without technical expertise.
With EaaS, you gain access to advanced tech without footing the bill or learning how to use it. That’s like getting the latest iPhone and having someone set it up, customize it, and walk you through the features—without ever going to the store.
What do regulators and sustainability goals have to do with this?
A lot, actually.
Governments are tightening energy efficiency standards and rewarding organizations that decarbonize. If you’re stuck with inefficient systems, you could be paying more in fines or missing out on lucrative rebates.
EaaS providers often design systems with sustainability built in—solar, smart HVAC, EV charging, and more. That makes it easier to meet regulatory requirements or corporate ESG goals without needing to become an energy policy nerd overnight.
Procurement, on the other hand, doesn’t inherently help you reduce carbon emissions unless you intentionally choose renewable sources. It gives you a choice, but the onus is on you to choose sustainability.
So ask yourself: is sustainability a checkbox or a core value? That answer might tip the scale.
Still can’t decide? Here’s a quick cheat sheet
If you’re trying to figure out where your organization fits, consider this:
Commercial Energy Procurement Might Be Better If:
- You want control over who supplies your energy
You already have a solid energy management team - You’re comfortable navigating the market
- You’re focused on short-to-mid-term budgeting
EaaS Might Be the Better Fit If:
- You want long-term cost predictability
- You don’t have the capital for energy upgrades
- You value automation, efficiency, and outsourcing
- You want to align with green energy goals without the headache
Sometimes the best move is actually a hybrid model—procure your energy but outsource certain systems or upgrades under an EaaS framework. Flexibility, after all, is the name of the game.
So… Which One’s Better? Let’s Call It Like It Is.
Alright, here’s the truth bomb—there’s no universal “better” in the commercial energy procurement vs EaaS debate. It comes down to your company’s appetite for control, your financial flexibility, and your long-term energy strategy.
If you’re still waffling between these two paths, you’re not alone. Many businesses are stuck in that in-between zone where they don’t want full control but aren’t ready to hand it all over either. That’s okay. It just means you’re being thoughtful.
Want a real answer that fits your business? That’s where experts come in.
Take the Guesswork Out of Your Energy Strategy
When it comes to choosing between commercial energy procurement vs EaaS, you shouldn’t have to rely on a gut feeling or copy what your competitors are doing. Your business is unique—your energy strategy should be too.
At PRC Energy Group, we help you cut through the complexity, understand the pros and cons based on your situation, and design a plan that actually works for you.
We also offer broker services for residential clients and conduct predominant use studies to help determine if you qualify for tax exemptions.
So whether you’re craving control or just want someone to handle it all—yeah, we’ve got your back. Contact us today to get started.