Five-store grocery chain upgrades HVAC and refrigeration with no upfront capital

ONSITE Utility Services says a family-owned grocery chain modernized five stores with lighting, refrigeration, rooftop units and controls without spending capital or taking on debt. The project is projected to deliver more than $1 million in net cash flow over 10 years.

Why it matters: - Grocery stores operate on thin margins, so energy and maintenance savings can directly affect operating income. - The project shows how an Energy-as-a-Service model can fund building upgrades without upfront capital or debt. - ONSITE says the five-store chain will keep 100% of the savings after the service term ends.

What happened: - ONSITE Utility Services announced that a family-owned chain of five grocery stores modernized aging HVAC and refrigeration systems. - The work was completed through ONSITE's Energy-as-a-Service platform. - The project covered LED lighting, EC motors for refrigeration, new rooftop units with advanced thermostats, and controls for walk-in coolers, freezers, and anti-sweat freezer doors. - ONSITE said the chain did not spend capital or take on debt to complete the upgrades.

The details: - ONSITE and its contractor team completed a lighting study, reviewed 12 months of utility bills, and performed a full ASHRAE Level II audit. - The upgrade plan bundled electricity savings, maintenance savings, rebates, and operational improvements into one scope. - The deployment included LED retrofits, EC motor upgrades, new high-efficiency RTUs, walk-in and freezer controls, and thermostat and anti-sweat optimization. - The project includes full maintenance coverage over a five-year term. - ONSITE charges a single monthly service fee that is lower than the chain's prior combined electricity and maintenance costs. - At the end of the term, ONSITE abandons the equipment and the client retains the savings with no buyout required. - ONSITE estimated $375,104 in avoided capital expenditure. - ONSITE projected $1,296,249 in electric savings over 10 years. - ONSITE projected $206,399 in maintenance savings over 10 years. - ONSITE projected $1,041,455 in net savings cash flow to the client over 10 years. - ONSITE Utility Services says it designs, funds and implements energy efficiency and infrastructure upgrades for commercial, industrial, healthcare and municipal facilities nationwide. - ONSITE says its Energy-as-a-Service platform provides 100% of the capital, equipment, installation and maintenance for qualifying projects at zero capital cost and zero debt to the client. - ONSITE says customers pay a predictable monthly service fee and keep 100% of ongoing savings after the term ends. - ONSITE included its website, More information.

Between the lines: - The structure shifts the project from a capital expense to an operating expense. - That can make upgrades possible for retailers that want efficiency gains but cannot justify or finance a large upfront investment. - The reported savings mix energy, maintenance and avoided capital, which suggests the value case depends on both equipment performance and service contract terms.

What's next: - The grocery chain will operate under the five-year service term while ONSITE handles maintenance coverage. - The chain is expected to realize the remaining projected savings over the 10-year period. - After the term ends, the chain keeps the savings without a buyout obligation.

The bottom line: - ONSITE is using a zero-capital financing model to turn building upgrades into immediate cash-flow positive projects for a small grocery chain.