Embed for your customers - Capacity Required

lherbert501 You could use an A1 SKU or an EM1 SKU according to this. You could also use an F2 SKU.

Capacity and SKUs in Power BI embedded analytics - Power BI | Microsoft Learn

For embedding Power BI for customers, the minimum capacity options are:

A1 SKU – basic Power BI Embedded

EM1 SKU – supports embedding for your organization

F2 SKU – flexible option for testing/development

You do not need Microsoft Fabric for a base working setup; Azure Power BI Embedded alone is sufficient. Later, you can upgrade to higher SKUs or Fabric integration as needed.

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Regards,
Rufyda Rahma | MIE 

You’re on the right track. Since you’re using App Owns Data and embedding reports into Power Pages for external customers, the recommended choice is the A series Power BI Embedded (A1 or higher). This series is designed for customer-facing apps, and your customers won’t need Power BI licences to access the reports.

The EM series is intended mainly for internal company users, so it’s typically not suitable for external customers. You can start with A1 and scale up the capacity if needed.

Thank You.