Finance

LED Lighting as a Service

LED lighting as a service

Upgrade your lighting to LED at no upfront cost.

What is lighting as a service?

The benefits of switching your lighting to LEDs are numerous: energy savings of up to 90%, higher quality light, greater control and up to 16 times the lifespan of halogen bulbs.

In fact, the only barrier to upgrading is the upfront cost - which can be significant. By partnering with ECI Energy, we can offer LED lighting as a service:

  • all your lights are replaced with LEDs at no upfront cost;
  • the service is repaid through a proportion of your bill savings over 5 years;
  • comprehensive on site 5 year warranty;
  • after those 5 years, all the savings are yours.

For the service to be economical, you need a minimum of 100 lights to be replaced.

Example breakdown of costs

Here is a full cost breakdown from a recent project:

Original lighting bill

£2,000 p/m

New LED lighting bill

£900 p/m (55% saving)

Cost of LED upgrade

£0

Lighting as a service fee (for 5 years)

£970 p/m (88% of saving)

Net savings in first 5 years

£130 p/m

Savings after 5 years

£1,100 p/m

 

Do the costs and savings vary?

The lighting as a service (LaaS) fee varies depending on the cost of the project. For example, if we upgraded an underground carpark where the old lighting was operating 24/7 with efficient LED lighting, the savings generated would be significant. In a recent install, a customer saved just over £20k per year by upgrading to LED lighting. The monthly LaaS fee was £500 per month for this project. Therefore, the savings generated far outweighed the monthly LaaS fee.

Generally speaking, the LaaS fee works out at around 50% of the savings. The LaaS monthly fee is not formulated based on the savings generated on a project - it is generated purely based on the cost of the project irrespective of the savings. Schools for example, have low operating hours. An LED upgrade for schools will not provide as high value savings as an upgrade for an underground carpark, yet to install 200 lights in either premises will cost the same. The school with its low operating hours will see a LaaS fee that may be equal or only slightly lower than the savings generated, whereas the underground carpark will generate far more savings.

Request a quote

If you’d like to find out more about upgrading your lighting to LED through our LaaS offering, please give us a call on 0118 951 4490 or request a quote:

Request free advice / quote

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