LEDs-as-a-Service? I know what you might be saying – it seems like everything has an “as-a-service” model these days – is this for real? Yes indeed and we have all the details on how it’s setup and why it might actually make sense to do for many commercial and industrial properties.
First off – retrofitting commercial and industrial properties with LED lighting might make financial sense to do, but at scale, retrofit projects often pose a challenge from a capital standpoint. This is exactly the pain point Green Lumens and SparkFund are looking to eliminate with the newly launched national partnership. The partnership was designed to eliminate the up-front costs through a no-money-down approach – which conveniently turns project purchases from capital expenditures into operating expenses.
In addition to being able to gap the expenditure as a monthly expense which can more closely be correlated to the reduced maintenance costs for light changes and the electricity savings that the high efficiency LED bulbs enable, leveraging a partner with expertise in LED lighting retrofit solutions can reduce project execution times, purchasing costs, and installation.
The partnership kicks off the LED as-a-service solution with a six-figure high-efficiency LED retrofit project at suburban Atlanta’s Perimeter Place multi-tenant office complex that delivers some impressive numbers. The 60-month operating lease will:
- Save $62,000 annually
- Create a net positive cash flow of $2,000 per month, starting on day one
- Prevent 11,100 pounds of CO2 emissions per year
From this blockbuster pilot installation, the partnership will roll out nationally to the growing market of energy efficiency customers with large building portfolios targeting universities, retail and restaurant chains, hospitals, multi-tenant buildings, and municipalities. The partnership has been designed such that Green Lumens will handle the operational side of the house including installation, and financing will be arranged by SparkFund.
We often tout energy efficiency as the first step that should be taken to reduce carbon/emissions/energy footprints and the same is true in the commercial and industrial sectors. The ACEEE estimates that $279 billion could be invested in building efficiency by the private sector, and the U.S. Department of Energy expects LEDs will represent 82% of commercial sector and 87% of industrial sector lighting sales by 2030.
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