What is Lighting-as-a-Service (LaaS) and What does it mean for LED Lighting Retrofits?

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There is no doubt that LED lighting lowers the carbon footprint, improves employee mood and performance, and extends the lifetime of a lighting system. LED lighting is an ultra-efficient system that keeps energy costs down while decreasing heat emittance. So staff and customers feel good, and you save money and the Earth at the same time. However, a business that doesn't have a LED lighting system and requires a full retrofit finds it is expensive and could literally put a company, particularly a small company, deep into debt. Lighting-as-a-Service or LaaS is a solution worth considering. 

 What is LaaS?

Basically, LaaS is a monthly service contract or subscription for a LED lighting retrofit. It bypasses a large one time investment and relieves the company of the headaches associated with a retrofit project.

The lighting service provider installs the system and usually offers a warranty. A good provider takes care of the entire lighting system retrofit including the design, financing, installation, maintenance, monitoring, and adjustments such as color tuning and dimming. 

What does it mean for LED lighting retrofits?

Using a lighting service gives a business of any size the opportunity to institute a high efficiency LED lighting system into their buildings. A monthly plan eliminates upfront investment so a retrofit is much more affordable.

There is an immediate positive cash flow following the installation as the cost of energy declines. This energy savings is constant for the life of the LED lighting system. 

The service takes care of everything associated with the installation of the new system so there is no need for anyone in the company to look for and supervise a variety of contractors, worry about permits and disposal of the old lighting system, or if the new LED system complies with local and federal requirements. 

 Additional Benefits

  • Upgrades and performance improvements by the service provider can be negotiated to continue throughout the term of the contract. The subscriber benefits from ongoing innovations in the LED lighting field without having further capital expenditure. 
  • The monthly investment becomes an operating expense.
  • A maintenance schedule is worked into the contract so the business experiences less burnouts and possible system operational problems.
  • Using a lighting service opens up the possibility of deploying loT sensors and controllers along with LED technology, enabling many services outside of the lighting system. Think sophisticated security, monitoring that supports employees allowing them to give first class service to customers, and controlling on-property traffic.
  • Receive top-of-the-line, high quality products.
  • You have one point of contact for all your lighting needs. 

Laas is the new kid on the block of monthly subscription services, but it is expected to grow as much as 56% over the next five years. Pilot projects and test cases have shown that it is a viable and much needed service to get economical LED lighting systems into companies that otherwise would not be able to afford it.

As more lighting service providers enter the market the business model will be refined and more enticing offerings will be available to customers.

 Ready to use a Lighting-as-a-Service? We can help. We come to you and conduct an audit to give your facility the best possible LED lighting retrofit that fits your budget and your needs.

We give you a quote and discuss how much savings you can expect by letting us cover the cost. We take the full burden of a LED lighting retrofit and all that comes with it off your shoulders, giving you more time to concentrate on your business and your customers. Contact us to learn how we can be your Lighting-as-a-Service provider.