A consistent upward trend exists in OPEX in the PH and applies to businesses or organisations relying solely on cooling systems for their operation. The local market for HVAC services in the Philippines is projected to grow to USD 1.65 billion by 2025 due to rising demand for HVAC services from Commercial facilities, including Shopping Centres, Hospitals, Office Buildings, and Industrial Facilities.
There is also a need for increased electricity consumption and cost associated with the increased demand for cooling systems, since energy use is generally the largest component of a building’s monthly operating expenses.
Cooling as a Service is an innovative solution to this problem. Rather than owning their own cooling systems, companies will pay for cooling based on usage without having an initial capital investment or dealing with fluctuating performance & costs.
What is Cooling as a Service (CaaS)?
Cooling as a Service (CaaS) functions in much the same way as ride sharing compared with owning a car. In the CaaS model:
- The provider will design, install, operate, and maintain your complete commercial HVAC system.
- Your business pays for cooling output (or a monthly fee that does not vary).
- Businesses are no longer responsible for CapEx, repairs, or any associated risks with downtime.
In 2017, the Philippines became one of the early adopters of CaaS by deploying one of the largest and most energy-efficient cooling systems in Asia, with the following results:
- 35% Reduction in Electricity Consumption
- 50% Improvement in Energy Efficiency
As a result, there are now 64 certified Energy Service Companies (ESCOs) across the country, according to the Department of Energy (DOE), expanding from only 15 in 2015. This rapid growth has helped to accelerate the transition to a performance-based energy management solution.
Benefits of Cooling as a Service for PH Commercial Properties
The idea of “Cooling as a Service” is growing in the Philippines because it alleviates the main issues of traditional HVAC systems: high initial investments, unforeseen maintenance and repair costs, and increased electricity costs. The following are significant advantages of CaaS for commercial properties around the nation.
Zero CapEx and Reduced OPEX
Traditional commercial air conditioning requires expensive equipment purchases and frequent repairs. CaaS eliminates these costs.
Benefits include:
- Zero upfront investment
- 20–35% immediate energy savings
- Predictable monthly billing for easier budgeting
- Reduced operating expenses for 5–10 years
Businesses can reallocate freed-up capital toward expansion, modernization, or sustainability initiatives.
Higher Efficiency and Guaranteed Performance
Your Commercial HVAC Systems operated by CaaS Providers operate at maximum efficiency every day. So you get:
- Less equipment downtime
- Longer equipment life
- More consistent temperatures and comfort level
- Better Indoor Air Quality
- Increased Worker Productivity
Since the CaaS Provider owns the equipment, it has an incentive to install the greatest energy-efficient chillers, pumps, controls, and monitoring systems.
Improved Business Continuity
From malls to hospitals, consistency is critical. With CaaS:
- Equipment is monitored 24/7
- Technicians respond rapidly
- Failures are minimized through proactive maintenance
This keeps customers comfortable and operations uninterrupted.
Philippine Case Studies: Real Buildings, Real Savings
Cooling as a Service is becoming popular in the Philippines as it addresses the challenges associated with traditional HVAC ownership, high upfront costs, unanticipated repair costs, and increasing energy costs. Here are some of the key benefits Cooling as a Service provides for commercial properties throughout the Philippines.
Industrial Estates
An industrial estate in Alabang adopted CaaS for 12 buildings and achieved:
- 65% reduction in water use
- 50% lower CO₂ emissions
- Significant reductions in electricity consumption
Hospitals and Healthcare
Hospitals rely on stable temperature and airflow. With CaaS:
- Systems run reliably for patient safety
- Air distribution remains consistent
- Energy costs drop significantly
CaaS also supports their energy-management programs.
Shopping Malls
A major mall chain reduced its cooling-related OPEX by 25% in one year, improving shopper comfort and keeping people in stores longer.
Offices Across BGC, Makati, and Cebu
Office buildings achieved:
- Smoother HVAC operations
- Better control of indoor climate
- Hundreds of dollars (thousands of pesos) saved monthly
How to Choose the Right CaaS Provider
Selecting the best cooling service provider requires careful evaluation since not all providers do not possess the same level of experience, certification, and support available. By identifying these key considerations, Philippine companies can make informed decisions when choosing a Cooling As A Service (CaaS) provider.
When evaluating Cooling as a Service companies in the Philippines, ask:
1. Do they have proven expertise with commercial air conditioners?
They should understand:
- Tropical climate HVAC load
- Commercial HVAC systems for malls, hospitals, and industrial sites
- Energy management and monitoring systems
2. Are they DOE-registered and certified?
Look for:
- DOE-registered technicians
- ESCO accreditation
- Documented performance guarantees
- Ability to secure financing for large systems
3. Do they include a full energy audit?
Legitimate providers offer:
- Free onsite energy audits
- Custom cooling system designs
- Proper load assessments
- Detailed ROI and savings estimates
This ensures you get the right equipment, not a one-size-fits-all solution.
4. Can they maintain and support the system locally?
Questions to ask:
- Do they have Metro Manila–based technicians?
- What is their response time?
- How often do they perform preventive maintenance?
You want a partner that can keep you running 24/7.
Conclusion
The pressure to trim costs never ends for Filipino businesses. The traditional burdens of commercial HVAC ownership are lost in operational activity. Cooling as a Service offers a clean solution. Zero upfront costs. Predictable monthly payments. The best possible cooling performance during times of peak need. Expert maintenance delivered right when you need it.
The economics are compelling. Lower Opex. Better cash flow. Increased employee comfort. Benefits to our environment. This is a win in every dimension.
Would you like to reduce cooling costs by 20%-35%? Call us at Nativ Techniks for a complimentary energy audit. Our HVAC contractors will evaluate your system and show you exactly how Cooling as a Service can save your business cold, hard cash. Call us at +63 917 631 0032, or email wecare@nativtechniks.com to learn more about our HVAC solutions and energy management options. Start optimizing today!
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