What is Lighting as a Service (LaaS)?
Why spend your capex budget on lighting when you can use it for something with better leverage? US LED offers a solution for companies looking to increase efficiencies that reduce overall energy consumption and eliminate maintenance. Our Light Now Program, also referred to as "Lighting as a Service" (LaaS), is an all-inclusive service that allows businesses to obtain energy-efficient LED lighting and controls with no upfront capital.
Because the Program is a service agreement, it qualifies as an operating expense, not a capital expenditure amortized on your balance sheet. For a qualified LaaS program, cash flow is positive on day one since your energy savings cover the monthly payments for the Program. Those payments cover the cost of new LED lighting, installation, and all maintenance for the duration of the agreement.
How does Lighting as a Service (LaaS) work?
Lighting as a Service (Laas) is a simple approach to converting your business to energy-efficient lighting technology without the complication of budget constraints. With the Light Now Program, customers can implement turnkey LED lighting projects utilizing a subscription model that eliminates all upfront costs.
The Light Now Program (Lighting as a Service) In Summary:
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US LED will install a new, energy-efficient LED lighting solution at no up-front capital cost.
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The project is typically installed one to three months after the signed Program agreement.
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US LED will maintain the lighting system over the life of the Program service agreement.
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The monthly payment remains fixed for the duration of the Program service agreement.
How is Lighting as a Service (Laas) different than other procurement methods?
Capital Expenditure
This requires that the lighting is paid for upfront. You have complete ownership over the lighting system. Any future service or maintenance beyond the initial manufacturer's product warranty is up to you to take care of.
Loan or Lease Agreement
This reduces the initial expense of new lighting upfront but it is still considered a capital expense. Besides the interest over the time of the loan, you're responsible for ongoing service and maintenance beyond the initial manufacturer's product warranty.
Lighting As A Service
A monthly payment that divides the cost of the lighting, installation, and ongoing maintenance over the term of the agreement. Because it's defined as a service agreement, it’s designated as an operating expense and not a capital expense.
What are the benefits of Lighting as a Service?
To be the most comprehensive LED lighting manufacturer, US LED developed a full-service approach, offering an extensive catalog of LED lighting solutions and end-to-end services. Below are a few benefits of having US LED upgrade your facilities' lighting using our Light Now Program.
1
Zero Upfront Capital
All the energy-efficient LED luminaires in a custom solution are included in the agreement and require no capital expenditure by the Customer.
3
Zero Lighting Maintenance
Maintenance costs associated with the lighting are eliminated. All parts and labor are included in the coverage for the duration of the Program Agreement with no proration.
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Improved Business Productivity and Safety
With improved light levels and the elimination of maintenance, employees can be more productive by focusing on the task at hand and avoid hazards associated with poor visibility.
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Protection Against Technological Obsolescence
US LED will install the advanced LED lighting technology. At the end of the Agreement, if desired and agreeable to both parties, upgrades can be completed where necessary to continue the ongoing savings and the Program extended.
2
Zero Installation Costs
The Program’s entire turnkey installation costs are included in the Agreement and are the responsibility of US LED. The lighting upgrade will produce no negative impact on operational costs.
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Immediate Savings Day One
From the moment your new LED lights are turned on, your costs will be reduced enough to produce a positive cash flow - day one! The value of your property and your business just went up.
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Environmentally Friendly
With energy-efficient LED lighting, businesses can reduce their carbon footprint and increase their focus on sustainability even more. LED technology can also indirectly benefit HVAC costs by reducing the heat previously generated by legacy lighting technology.
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Dedicated Project Management and Installation
As the single point of contact, the experienced US LED project management team will efficiently complete your lighting upgrade with little customer involvement and the assurance that all local, state, and federal requirements are followed.
