Steam-as-a-Service FAQ

With Steam-as-a-Service, you can focus on your core business, and leave all your steam needs in the hands of experts — all for a single monthly payment, and with virtually no upfront investment required. So how exactly does that work? Some frequently asked questions about costs and financials help explain this 21^st-century model for steam.

How is the Steam-as-a-Service model different from a traditional lease or outright ownership?

Steam-as-a-Service, or SaaS, is a bundled service offering, which means all the steam plant equipment, along with all the related operations and oversight, is the responsibility of the SaaS team itself. You are essentially paying only for the output of that system — the steam you need, when you need it — instead of paying for the equipment that makes it, too. This offers several financial advantages.

The SaaS model moves the cost of steam off the balance sheet, and into operations. This preserves valuable capital, as well as borrowing capacity. Overall, SaaS maintains liquidity in a way that ownership simply cannot.

In addition, SaaS removes the headaches — and hidden costs   — that come with asset management. Figuring taxes and depreciation; managing procurement, inventory, insurance; all the other time-consuming administrative work a steam plant requires — all of that goes away. Instead, you pay one monthly bill, akin to paying for cable or Internet services.

But what if I’ve always leased large equipment? Why would I switch to a Steam-as-a-Service model?

Because of recent changes in accounting rules, the attraction of leasing large equipment has dramatically waned. It has lost many of its financial advantages. Starting in January 2019, large equipment leases must now appear as assets on the balance sheet. This means that large equipment leases now have similar financial implications to outright purchase. Not only in terms of costs, but in terms of administration. With Steam-as-a-Service, you can get a major system upgrade, or an entirely new steam plant, but the cost remains off-balance sheet.

So that means I don’t have to secure my own financing to get Steam-as-a-Service?

Correct. It’s part of the deal. Financing is built into the SaaS offering.

What about day-to-day operations? Do I still have to manage that on my own?

The short answer is no. SaaS is a total service offering. This means that the SaaS team takes care of everything that relates to your onsite steam plant — design, engineering and build, onsite operations, inventory and consumables, emissions and compliance concerns. It all falls under the umbrella of the Steam-as-a-Service package, and is included in your monthly bill.

What if my steam needs change? What if they increase or decrease?

SaaS offers a great deal of flexibility — which can be crucial, especially during times of uncertain economic outlook. The model is highly scalable. If your steam needs change, costs adjusts accordingly. If you need to increase or decrease steam load, your payments keep pace with the updated volume of production. In addition, if you need to increase or decrease total capacity — in other words, if you need to add or subtract boilers — the offering allows this as well. Steam-as-a-Service is designed to accommodate change, and is well-suited to help you thrive in an ever-evolving market.

Steam-as-a-Service is a new model. How can I trust that this novel approach is financially sound?

Uptime and output guarantees are a part of the package. You can rest assured that you will be financially compensated if you don’t get the steam you need, when you need it. It’s a no-risk entrée to highly efficient, scalable steam generation. Security and peace of mind are built into the offering.