We’ve had a prospect of ours, a large enterprise in Czechia in the energy sector, that needed SaaS billing software to expand to 6 new EU markets. They’d already had a fine legacy billing system that served their business needs well in their home country. It was not about replacing the old one but rather getting a new SaaS billing system, an ‘umbrella’ one, to cover their business endeavours in + 6 new markets.
“‘Can you do this?’ we’ve been asked. Yes, we can.”
Nowadays, modern SaaS billing solutions meet the needs of SMEs in energy and utility with any business strategy. As the industry has been developing intensively over the years, optimising things and improving operations, adopting new business models, diversifying portfolios, etc., so have vendors of SaaS billing tools for energy and utility.
Spoiler: Many of them came with a telco background, which makes them even more attractive since these companies know the drill about customer management, billing automation, partner management and revenue reconciliation (which is a big deal in EV charging business, for example, as they strive to build networks and onboard partners), etc.
But first things first, let’s talk about what SaaS billing software is in energy and utility, how it serves SMEs with different business goals, features and processes involved, and much more.
Now, let’s get it.
What is SaaS billing in the energy and utility sectors?
Traditionally, SaaS billing in the energy and utility sectors refers to a cloud-based approach to managing and automating billing processes. This model allows companies to handle recurring, usage-based, or hybrid billing requirements efficiently while reducing operational costs and errors. With this approach, businesses deliver transparent and accurate bills, improve customer satisfaction, and integrate seamlessly with other business systems.
SaaS billing has been the bread and butter of maxBill for over 29 years now. From our perspective applied to the present industry’s evolution, SaaS billing empowers more:
- Flexibility and Modularity
SaaS billing solutions often utilise a composable architecture, enabling utilities to dynamically assemble capabilities suited to specific business models. This agility supports innovation during energy transitions, such as billing for electric vehicle charging or peer-to-peer energy exchanges.
- Cost Efficiency
By leveraging cloud-based platforms, utilities reduce infrastructure and maintenance costs. SaaS solutions offer economies of scale, particularly important for smaller utilities aiming to enhance competitiveness without heavy upfront investments.
- Rapid Deployment of New Features
SaaS billing systems facilitate faster rollouts of new functionalities compared to legacy systems. For example, they integrate capabilities like advanced analytics, customer self-service tools, and support for multi-commodity billing.
- Improved Customer Engagement
Digital engagement capabilities, including multichannel customer interactions, electronic billing, and consumption analytics, are seamlessly incorporated into SaaS platforms. This enhances the customer experience, a crucial differentiator in competitive markets.
- Enhanced Adaptability
SaaS billing tools are better suited for handling evolving regulatory and market demands. They integrate easily with external systems, such as distributed energy resource management, renewable energy credits, or blockchain-based smart contracts.
- Scalability
B2B SaaS billing software caters to diverse utility sizes, from small municipal utilities to large enterprises, enabling them to scale services efficiently as customer bases or services grow.
- Support for Energy Transition
They enable utilities to innovate in response to the decentralisation and decarbonisation of energy production. For instance, billing for prosumer-generated power or supporting dynamic energy tariffs becomes feasible with a SaaS billing engine.
Speaking of energy and utility sizes, let’s distil what kind of companies benefit from these solutions.
SaaS billing solutions for SMEs in energy and utility
MaxBill provides B2B SaaS billing software to utilities with different profiles coming with varying business needs. Let us emphasize what kind of needs are subject to B2B SaaS billing implementation.
At MaxBill, we distill:
Utilities seeking affordable, basic billing functionality with minimal setup
They are often managed independently by the customer. They typically operate with up to 5,000 domestic or 100 B2B customers, prioritizing cost savings. Their focus is on straightforward subscription billing to manage simple operations efficiently.
Potential Business Needs:
- Cost Management: Affordable solutions to reduce expenses while providing essential billing functions.
- Ease of Use: A straightforward, user-friendly system for smaller teams.
- Scalability: Flexibility to upgrade as the company grows.
Fast-growing companies managing up to 50,000 domestic or 1,000 B2B customers
They are expanding their service offerings, requiring comprehensive b2b SaaS billing software and CRM software for automation, reporting, and customer management. These businesses look to streamline their processes while introducing new products or services.
Potential Business Needs:
- Automation: Efficient billing and CRM to streamline operations and reduce manual effort.
- Customer Relationship Management: Tools to enhance customer engagement and retention.
- Support for New Services: Capabilities to manage additional products or services as the business expands.
Established corporations serving diverse customer bases with complex billing schemes
They include B2C, B2B, and I&C customers. These companies often expand into new geographic regions or launch new business lines, requiring robust, full-suite enterprise SaaS billing with tailored features and dedicated implementation support. They prioritize scalability and configurability to meet the demands of their intricate operations.
Potential Business Needs:
- Complex SaaS billing Software Enterprise Solutions: Capabilities to manage intricate schemes across different customer types.
- Geographical Scalability: Support for cross-border operations and compliance with local regulations.
- Comprehensive Support: Implementation assistance and ongoing support for large-scale deployments.
- Configurability: Tailored solutions to meet unique business requirements and adapt to evolving needs.
Related:
SaaS billing process from onboarding to reporting
Traditionally, the SaaS billing process encompasses the following key stages:
- Customer Onboarding: Subscription setup and payment details collection.
- Billing Cycle: Generate invoices at the start of each period.
- Usage Tracking: Monitor activity for usage-based plans.
- Subscription Management: Enable plan adjustments or cancellations.
- Invoice Distribution: Send invoices via email or dashboard.
- Payment Collection: Process automated payments securely.
- Dunning Automation: Handle overdue payments efficiently.
- Churn Monitoring: Track cancellations and optimize retention.
- Reporting and Analytics: Use insights for revenue and performance.
We will stop on some points in detail.
At Maxbill, we factor in the peculiarities of each locale. For instance, the proportions of cost components of household electricity bills vary widely between EU countries. For example, taxes and fees account for over 50% of the final price in Germany, while Malta has only 5.7% attributed to taxes.
Differences in national policies, such as renewable energy subsidies or reduced VAT rates, significantly influence prices. The Netherlands stands out with a notable reduction in VAT on energy and a one-off energy allowance to alleviate high costs for low-income households.
When dealing with SaaS billing implementation, having a local system integrator will be a plus.
Reporting Dashboards
Speaking of reporting, within the MaxBill CRM solution, senior managers can access a Reporting Dashboards to monitor the company’s financial performance and client-related metrics with precision. The dashboard panel is structured into key sections: Overview, Revenue, Customers, Collections, and Debt.
Each section delivers a comprehensive, real-time snapshot of its respective area, enabling data-driven decisions and providing actionable insights to maintain financial stability and optimize client engagement.
Churn Monitoring
Also, churn monitoring is a big part of the B2B SaaS billing process. There are different reasons for that, starting from the company’s financial performance. Consumer watchdogs like Ofgem or Ofwat in the UK keep an eye on utilities checking if they satisfy customers. They give rankings and the media run with the stories.
To help energy and utility companies prevent high customer attrition, we came up with the ML churn predictive model to help prevent customers from switching to another supplier.
Related:
A Churn Prediction Model for Utilities to Increase Customer Loyalty
SaaS Billing Best Practices
To maximise the benefits of SaaS billing, companies should adopt the following best practices:
- Adopt a cloud-first strategy
- Сloud-based deployments ensure scalability, agility, and security. Cloud-based solutions enable utilities to reduce costs, streamline operations, and maintain compliance with regulatory standards through frequent updates and embedded security measures.
- Leverage AI/ML and automation
- Integrating artificial intelligence, machine learning, and robotic process automation into SaaS billing enhances efficiency and decision-making. AI-driven insights, predictive analytics, and chatbots improve customer service, streamline billing processes, and offer personalized experiences.
- Enable dynamic pricing and new revenue models
- As utility markets evolve, your CRM platform must support dynamic pricing models, electric vehicle (EV) charging plans, and services-to-cash capabilities. This flexibility helps utilities diversify revenue streams and align with emerging customer demands.
- Focus on customer-centric capabilities
- Modern billing solutions blur the lines between customer information systems and customer experience platforms. Key features include omnichannel communication, personalized pricing strategies, self-service options, and advanced engagement tools to improve retention and satisfaction.
- Adopt composable architecture
- Utilities benefit from modular and composable product architectures, which enable seamless integration of APIs, event-driven data exchange, and real-time operations. This flexibility ensures that CRM systems can evolve alongside changing utility and market needs.
- Enhance data security and governance
- Establishing clear policies and governance frameworks for AI models and operational data is critical. Utilities should define ownership and responsibility for model outputs to maximize value from embedded AI capabilities.
- Support prosumers and emerging markets
- Modern billing solutions cater to prosumers (customers who both consume and generate energy) and offer features like net metering and energy trading. These capabilities align with the growing demand for sustainability and customer participation in energy markets.
- Drive operational efficiency
- Automation of routine tasks like billing, account management, and revenue analysis reduces operational costs and improves service quality. Advanced load and demand analytics further optimize asset utilization and energy distribution.
- Support diverse deployment options
- Modern billing platforms accommodate various deployment models, from on-premises to full SaaS solutions, ensuring flexibility for utilities with different operational requirements.
- Promote total experience evolution
- Combining customer, employee, and user experiences underpins the success of modern billing and CRM. Features such as electronic bill presentment, multichannel interaction, and integrated analytics elevate the overall experience for all stakeholders.
Related:
Innovative and Competitive Pricing Strategies for Energy and Utility.
Dynamic pricing energy contracts to harness price volatility and get loyal customers
Everything about EV Charging Prices Across Europe.
SaaS billing automation is king
Automated billing is a must in energy and utility since it significantly enhances efficiency, accuracy, and customer satisfaction. Utilities streamline critical processes such as bill calculations, payment processing, and account management by leveraging such technologies as AI, machine learning (ML), and robotic process automation (RPA). Employees get involved less manually, minimizes errors, and get routine tasks accelerated, which altogether ultimately lowers operational costs.
Embedded AI models in metering and billing solutions also enable predictive analytics and customer insights, allowing utilities to offer personalized billing solutions such as dynamic pricing and tailored payment plans.
Automation further facilitates real-time data exchange, supporting event-driven operations and enabling features like energy usage tracking, time-of-use pricing, and net metering for prosumers.
Related:
Utility customer experience: how automation tackles key challenges.
Metering and billing capabilities
Some energy retailers when adding EV charging business to their portfolio, adopt the pay-as-you-go business model. Thus, metering support underpins the flexibility and efficiency of this model.
This allows service providers to offer tailored services based on precise customer needs, requiring advanced metering mechanisms to track resource usage accurately. Effective metering ensures that customers are billed fairly for their actual consumption, whether measured by user license, duration, frequency of use, resource utilization, specific functions accessed, or a combination of these factors.
In fact, nowadays modern SaaS billing solutions must incorporate diverse metering capabilities to address the complex needs of utilities and their customers. These platforms should support traditional metering for water, gas, and electricity alongside advanced metering infrastructures (AMI) like smart meters.
AMI enable real-time consumption tracking and dynamic pricing models. This adaptability ensures accurate billing for both residential and commercial customers, regardless of their specific metering setups.
Advanced capabilities like net metering, time-of-use pricing, and grid feed-ins are essential for engaging prosumers and supporting renewable energy adoption. SaaS billing systems should also integrate seamlessly with distributed energy resources (DERs) and smart devices to meet the strategic needs of companies that innovate with such solutions.
SaaS invoicing software for invoice formatting
Bills communicate. Today, they are deemed as communication channels with customers. There was a Utility Week Intelligence Research with PayPal stating the top 3 criteria for a good utility bill.
We’ll outline them in brief:
1 – customers should fully understand their bills, information related to consumption and the money they pay;
2 – utilities should rather offer pay-as-you-go options than prepayment meters, which give greater control to customers over energy use;
3 – bills should be designed in a way to meet diverse needs, incl., the new gen of digital natives. Mobile bills are also utility bills!
Check out the full explanation of the criteria at What is a utility bill in your organisation today?
Bill formatting is an important part of ‘bill communication” within SaaS invoicing software, ensuring clear, personalized, and accessible communication with customers.
Galp Energía turned to MaxBill for bill formatting. The MaxBill Bill Formatting Server (BFS) has enabled Galp to generate invoices in various formats such as PDF, XML, and paper print, ensuring flexibility and clarity in customer communication.
Beyond invoicing, the system processes large volumes of data monthly and supports personalised correspondence like emails and letters.
Needless to say, bill formatting not only streamlines operations but also strengthens customer relationships through detailed and adaptable communication.
Related:
MaxBill Provides Bill Formatting Server to Galp Energía
SaaS billing models for traditional and innovative E&U businesses
SaaS billing primarily revolves around three general models:
- SaaS subscription billing: Customers pay a recurring fee, typically monthly or annually, for continuous access to the software. This model offers stability and predictability for both customers and providers.
- SaaS recurring billing: Utilities embrace a recurring business with complex revenue reconciliation, automated invoicing, managing customer attrition and cancellations, switching, third-party integrations, etc.
- Usage-based billing SaaS: Charges are based on actual consumption, making it ideal for dynamic usage scenarios (in other words, consumption SaaS billing software).
- Hybrid models: A combination of subscription and usage-based billing to suit diverse business needs.
Obviously, at MaxBill we see energy suppliers’ business models evolving. Here are the most common tendencies:
- Traditional models of meter-to-cash now include dynamic pricing, net metering, and real-time pricing due to the occurrence of prosumers (customers who generate and consume energy).
- Pay-as-you-go models: in this case, SaaS systems need to have advanced metering and include flexible billing options based on actual resource usage, such as consumption time or frequency of use.
- Diverse charging plans in the EV charging business: utilities now integrate EV charging management into their billing systems, offering dynamic pricing for charging based on time-of-use and energy demand.
- Distributed energy resource (DER) orchestration: Utilities are adopting models that integrate and manage decentralised energy resources, such as solar panels and battery storage systems.
- Bundled Services: SaaS subscription billing software allows utilities to offer bundled services like energy management, connectivity, and behind-the-meter solutions.
SaaS billing system features for energy and utility
Nowadays, SaaS billing participates in the organisation’s operational efficiency, and helps grow and expand business in other markets and niches. Below, we’ll outline key features of modern SaaS billing solution that utilities should look for when surveying vendors:
Meter-to-Cash (M2C) Automation
Automates billing and revenue management processes, including meter data handling, bill calculation, statement generation, and payment processing.
Customer Engagement and Self-Service
Provides tools for customer self-service portals and multichannel interaction, enabling users to manage accounts, view consumption analytics, and make payments conveniently.
Composable Architecture
Modern CRM and billing are modular and composable, allowing utilities to adapt and scale capabilities dynamically. This includes integrating customer-facing applications and operational systems to meet evolving demands.
Advanced Analytics Integration
Includes diagnostic, predictive, and prescriptive analytics for customer insights, load profiling, and consumption trends.
Cloud-First and API Integration
Offers cloud-based deployment options and exposes key functionalities through APIs. This ensures seamless integration with third-party systems and enables real-time, event-driven operations.
Configurable Billing Models
Supports diverse billing arrangements, such as pay-as-you-go, time-of-use pricing, and bundled services, catering to residential, commercial, and industrial customer segments.
Employee Efficiency Features
Enhances internal productivity by automating routine tasks like account management, billing exceptions, and service scheduling. At MaxBill, we deliver virtual CSR, a bot that helps customer service staff respond better, quickly and accurately.
Customer-Centric Design
Focuses on delivering a single, cohesive customer view, ensuring consistency across various touchpoints like service centers, mobile apps, and call centers.
Scalability and Real-Time Processing
Designed to handle large volumes of data and support incremental billing models, enabling real-time updates and more frequent customer interactions.
The implementation process and deployment
When it comes down to the implementation, it differs based on the vendor’s approach, customer requirements, and so on. Traditionally, implementing a SaaS billing solution involves the following steps:
- Assessment: Evaluate business requirements and identify pain points.
- Vendor Selection: Choose a SaaS provider that aligns with organizational goals.
- Integration: Incorporate the solution with existing systems.
- Testing: Conduct thorough testing to ensure functionality and accuracy.
- Training and Deployment: Equip teams with the necessary skills and launch the system.
At MaxBill, we offer three distinct implementation methodologies, each tailored to align with the specific needs and business objectives of small and medium-sized enterprises (SMEs) in energy and utility.
Over the years, MaxBill SaaS billing and CRM have been evolving as the sector required it, which allowed us to fully understand what works and what does not. That’s why we elaborated our corporate approach to SaaS billing implementation that embraces:
Iterative and Flexible Project Approach
MaxBill employs an agile methodology where project estimates, timelines, and deliverables are revisited and adjusted after each iteration. This ensures that the implementation adapts to changing requirements and business priorities while maintaining transparency and efficiency.
Dynamic Feature Integration
Features can be added, removed, or modified at any stage of the project based on evolving client needs. Development is organized into short sprints, each delivering a Minimum Viable Product (MVP) for testing and alignment with business objectives.
Light Gating Policy for Governance
MaxBill’s unique Light Gating Policy balances project speed, cost-efficiency, and control. This framework establishes key decision points, or “gates,” ensuring that all project artifacts are delivered and reviewed before proceeding to the next stage, streamlining governance and quality assurance.
Quality Standards Tailored to Each Project
MaxBill has developed a scalable quality control framework that selects appropriate testing standards based on project specifics. This ensures efficient use of resources while maintaining high-quality deliverables, avoiding unnecessary or costly tests for minor modifications.
Comprehensive Integration Framework
MaxBill’s solution supports seamless integration with third-party systems through a robust framework of Open APIs, a Kafka-based messaging bus, and microservices architecture. This allows for efficient data exchange and connectivity with external platforms such as CRMs, ERPs, web portals, and mobile apps, ensuring operational flexibility and scalability.
Related:
Modernising Utility Billing and CRM Systems: Practical Scenarios for Successful Energy Transition
Removing the utility CEOs and CIOs’ fear of implementing modern SaaS billing and CRM solution
How can utility CIOs prepare their companies for digital transformation?
Integrating the solution in your locale
If there’s no MaxBill’s presence in a certain locale, we partner up with a local system integrator.
SIs act as the vital bridge between the vendor’s solution and the client’s unique regional needs. Their involvement ensures smooth implementation, seamless integration, and ongoing support tailored to local contexts.
Why we partner up with system integrators:
Localized Expertise
System integrators possess in-depth knowledge of the regional market, regulatory requirements, and cultural nuances. This ensures that the SaaS implementation aligns with local compliance standards and operational practices, reducing risks associated with misaligned solutions.
MaxBill comes with a solid telco background where the collaboration with SIs was critical, since in this business knowing regulations and being compliant with local laws is simply a must.
Proximity for Timely Support
Without a local vendor presence, delays in addressing issues can disrupt operations. SIs provide on-the-ground support, ensuring faster response times for troubleshooting, adjustments, and system optimizations.
Configurable Integration
SIs adapt the SaaS billing solution to the client’s existing IT ecosystem, incorporating local third-party systems and tools. This ensures the solution works harmoniously with regional software and business processes, maximizing efficiency and compatibility.
Facilitating Communication
System integrators bridge language and time-zone gaps between the client and the vendor. They streamline communication, clarify requirements, and ensure that the project progresses smoothly despite geographical barriers.
Ongoing Training and Adaptation
Although MaxBill delivers impeccable staff training online, SIs local presence might serve a great ‘support system’. They provide hands-on training and resources, empowering the client’s team to fully adopt the SaaS solution. They also monitor evolving business needs, ensuring the system remains relevant and effective over time.
Achieve your 2025 strategic goals with MaxBill SaaS Billing for Energy and Utility
Top 5 best SaaS billing software for energy and utility
Grab our compilation of the top 5 best SaaS billing software to meet the business needs of modern energy and utility companies:
MaxBill billing system for energy and utility
- Overview: A leading provider of billing and customer management solutions specifically tailored for utilities, energy providers, and other service industries.
- Features: Comprehensive billing, customer relationship management (CRM), and revenue assurance capabilities; supports multi-service providers and complex pricing models.
- Customer Needs Addressed: Enables utilities to improve operational efficiency, streamline billing processes, and enhance customer satisfaction while complying with regulatory requirements.
2. Oracle Utilities
- Overview: Offers Oracle Utilities Customer Care and Billing (CC&B), widely used by energy and water utilities.
- Features: Advanced customer care and billing capabilities, robust integration with other Oracle products, support for complex pricing structures, and regulatory compliance.
- Customer Needs Addressed: Efficient customer billing, service request handling, and regulatory adherence for utilities.
3. SAP for Utilities
- Overview: SAP provides a comprehensive suite of solutions for utilities, including SAP IS-U (Industry-Specific Solution for Utilities).
- Features: Billing and invoicing for electricity, gas, and water; support for deregulated energy markets; customer relationship management (CRM) integration.
- Customer Needs Addressed: Seamless integration of billing with other operational systems, support for digital transformation, and improved customer engagement.
4. Itineris
- Overview: Focuses on utilities with its UMAX solution, built on Microsoft Dynamics 365.
- Features: Covers billing, customer engagement, and meter data management; customizable and scalable for utilities of all sizes.
- Customer Needs Addressed: Provides a modern, user-friendly platform for managing utility customer operations and billing.
5. Open Smartflex (Smartflex for Utilities)
- Overview: A solution tailored for utilities, combining CIS, billing, and workforce management.
- Features: End-to-end platform integrating customer information, billing processes, and workforce scheduling.
- Customer Needs Addressed: Supports utilities in improving operational efficiency, customer satisfaction, and adapting to regulatory changes.
FAQs
What is SaaS billing software?
This represents a cloud-based approach of how utilities and energy companies manage and automate billing processes. The purpose is to reduce operational costs and errors.
What type of billing is SaaS?
Usually, the SaaS billing models encompass recurring, usage-based, or hybrid billing types.
How is SaaS billing different?
Traditionally, it’s a subscription-based type of service provisions (regular payment, a month or year access to the cloud). It is the opposite to the one-time software purchaser hourly billing for services.
We highly recommend consulting our pros to find out how SaaS billing can be applied to your business needs.
