Lighting-as-a-Service: A Bright Idea!

Both public and private sector organizations are becoming increasingly aware of the benefits of LED lighting — the most notable being:

  • Increased energy efficiency/reduced energy costs: With 80% – 90% energy efficiency, LEDs use significantly less power than traditional fixtures. (Fluorescent bulbs are at approximately 40% efficiency, and incandescent bulbs only 10%)
  • Longer life/reduced maintenance: LEDs last approximately 11 years of continuous operation, or 22 years at 50% operation.
  • Improved sustainability: LED lights contain no toxic materials and are 100% recyclable.

But that’s just the beginning! When paired with sensors and software, LEDs become a conduit to the industrial internet of things (IoT) security systems and improved business intelligence.  This opens up almost unlimited possibilities to collect, analyze and take action on data-driven insights.

So, why hasn’t everyone made the transition?

While highly desirable, the initial costs and complexities associated with implementing new lighting systems can be challenging. A substantial capital investment is required to cover product and installation costs. Adding large capital expenditures to the balance sheet is rarely popular – especially when competing with other, revenue-producing priorities. Managing the installation and maintenance of the LEDs and their controls presents additional obstacles for many organizations.

This dilemma prompted new thinking and creative solutions. As a result, the way lighting systems are purchased and managed is changing – for the better.

Lighting as a purchased commodity  Lighting as a service!

Lighting-as-a-Service (LaaS) presents an attractive alternative to the traditional approach for upgrading lighting systems.  Rather than dealing with the costs, challenges, and risks themselves, organizations are looking to third-party partners to assume the financial, technical, design, installation and management responsibilities associated with upgrading their lighting systems.

When done right – working with program providers with the necessary experience and capabilities (financial, technological, construction, measurement, reporting, and monitoring) LaaS provides a stress- and risk-free solution for upgrading lighting. Specific benefits include:

  • No capital investment required
  • Reduced operating costs
  • Reduced maintenance costs
  • Improved employee morale and productivity
  • Reduced carbon emissions

The lighting program provider assumes all capital costs, implements the lighting, controls and retrofitting and then shares the energy savings with the customer. Concerns regarding fluctuating energy pricing and actual energy savings – as well as the risks associated with technology selection and performance – are erased, so customers can focus on what they do best. And that’s always a good idea!


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