A revenue-sharing business model is based on the principle that a capital investment (such as installing photovoltaic panels or LED lighting) will bring savings to a client, and an Energy Services Company (ESCO) can provide the upfront investment, receiving a payment over time that is less than the savings realised (shared revenues). The savings extend over time (i.e. 25 years with photovoltaic panels), and the payments to the ESCO only occur in the short term (i.e. 5 years).
For the client, it removes the need to make the capital investment up-front, dividing it over a period of time, and allows the customer to pay for the investment with the savings obtained, thus maintaining their cash flow.
Many of GoParity's projects fund either the ESCO or the client (where the payments of the loan are lower than the savings the system generates).