Improvements, innovation and efficiency in LED lighting in the past several years have transformed what was once a tech geek novelty into a revolution in efficiency and energy bill savings. Manufacturers and designers have taken hold of the possibilities of LED lighting and have created an unlimited array of choices to provide the best lighting options for your business, warehouse or commercial building. The tremendous energy efficiency of LED lighting allows you to retrofit your current lighting system in a way that creates no out of pocket expenses to you.
Enhance Your Building’s Appearance, Safety and Bottom Line
With the right lighting choices, you will be able to replace all of your current light and, if necessary, highlight the strengths of your building’s architecture by placing lights in areas and angles that would not have been possible with traditional lighting. One welcome benefit is that you will be able to provide a higher level of security to your building by placing lights in dark areas that have previously been difficult to illuminate.
The low energy required by LED lighting will have an immediate effect on your energy costs, but even better, your long-term return on investment will be multiplied by the longer lifespan of the new lighting. LED lighting typically has a 15-20 year lifespan.
How will you pay for it…without really paying for it?
Because LED lights are so energy efficient, installing them in your building will provide you with a substantial energy savings for the life of the LED lights. This large energy savings will fund the financing of the the entire purchase of your LED system. The typical LED lighting system is installed as a Lease Option Buy. You will pay a fixed amount per month for the term of the lease and at the end you will own the LED system. Your monthly payment will be funded by the difference in your old energy bill and your new one. This is similar to the way that most new solar installations are financed.
Here’s an example, if you’re monthly utility bill is currently $1000 dollars and the proposed LED lighting retrofit will save you $600 dollars a month, then you have the ability to Lease the newly installed system with a maximum monthly payment of $600.
Currently utility bill: $1000 a month
Utility bill savings per month with LED retrofit: $600
New utility bill after LED retrofit: $400
Maximum Monthly Lease payment: $600
Total new monthly payment of utility bill and lease payment would not exceed: $1000
In many cases, there is even a positive cash flow result from the upgrade. Meaning, you’re lease payment will be less than the total amount of energy savings. That’s what you’re aiming for. In most situations you’ll be able to achieve monthly positive cash flow, while having an entirely new, energy efficient lighting system.
Additional Cost Savings of Leasing
Beyond the aesthetic appeal of LED lighting, the cost savings alone makes this choice even more appealing. There is even an attractive tax benefit that should be pursued. At the end of the lease, there is usually a low final purchase of the lighting equipment. Depending on the tax laws of your state, this may be $1 or $101, but this will be your final outlay for the lighting during the remainder of its lifespan. At this point, the savings go directly to your bottom line. Other ways you will save are in the hard cost of maintenance and replacement. The typical lifespan of LED lighting is roughly 10 times the life of normal florescent lighting. Also, LED lighting operates at a much lower temperature, which means that your cooling costs will be lower as well.
A Retrofit Conversion with Nothing but Upside
Installing LED lighting in you building, whether it be an office building, warehouse, commercial building or showroom will create cost savings and a multitude of other benefits. There doesn’t appear to be a downside to retrofitting your property. You’ll be creating an environmentally responsible business culture and providing an example for others while benefiting from all of the financial benefits of you new, energy saving LED system.
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