Fuel cell maker Bloom Energy today announced a new business model that will allow companies to purchase electricity as a service, rather than purchasing an expensive fuel cell outright.
The service model could give Bloom Energy a new income stream, as it works to lower the $800,000 price tag on its signature "Bloom Box" technology. The company emerged on the scene last year with high-profile customers like E-Bay (Nasdaq: EBAY) and Coca-Cola (NYSE: KO).
The company said 200 new systems will initially be deployed under the new Bloom Electrons service. The service allows customers to lock in their electricity rates for 10 years,
delivering fixed predictable costs. Bloom manages and
maintains the systems on the customers’ sites and the customers pay only for the electricity
Bloom Energy said under the new service plan customers can immediately
save up to 20% on their energy bills. Furthermore it allows them to scale deployments more quickly to increase their supply of cleaner electricity.
The Bloom Box converts natural gas or biogas into electricity without combustion and its related emissions.
The company said new customers such as California Institute
of Technology, BD (Becton, Dickinson and Company), and Kaiser Permanente plan to take advantage of the service.
Bloom Energy hopes the service will open the door to new types of customers such as non-profit
organizations, educational institutions, and utilities.
Bloom energy is headquartered
in Sunnyvale, CA.