Companies and organizations around the world are always looking for ways to save money—and become better community partners by decreasing carbon emissions to create a more sustainable future. LED lighting holds great potential to reduce energy consumption within the United States. It is estimated that widespread use of LEDs could save about 348 TWh (compared to zero LED use) of electricity. These lights differ from traditional lighting solutions in that they are smaller, generate more illumination with minimal heat, project better directional lighting, and are safer and sturdier than common incandescent and fluorescent bulbs.
Making the upgrade to LED lighting is a smart play, saving on operational costs, providing long-lasting performance, and decreasing an organization’s carbon footprint. However, potential adopters have concerns regarding the upfront costs of making the switch to LEDs. That’s where Lighting as a Service (LaaS) comes in. LaaS is a unique business model with the objective of reducing upfront installation expenses. How? By using captured operational savings created by installing more energy efficient lighting as a way of paying for a lighting retrofit project. In short, the project literally pays for itself, decreasing or eliminating up-front capital expenditures on the initiative.
One example of such a project comes from Pensacola, Florida. The National Flight Academy, NFA, a non-profit educational organization, wanted to upgrade to more efficient LED lighting in their facility. By using the LaaS model, Facility Solutions Group, FSG, was able to help the NFA realize the immediate monthly operational savings of LED without the upfront costs traditionally associated with such a project.
These immediate operational savings will be invested back into the organization’s primary mission of providing exciting STEM education opportunities for students from around the nation.
Additionally, the reliability of LED and the resulting longer life cycle of the product will reduce the NFA’s maintenance budget—and allow the NFA to effectively “forget” about their lighting for almost 10 years before it’s time to do another replacement. In the end, LaaS was the right model for the NFA.
At Facility Solutions Group, FSG, we are proud to offer LaaS strategies to our clients. By offering these strategies we help businesses and other institutions retrofit their exterior and interior lighting to realize significant savings long-term, all with smaller capital expenditure budgets.
If your business or institution is looking to save money through an LED retrofit project, contact us today to discuss if LaaS is right for you. We look forward to helping you “light” better!