Business Advantages of

LED Lighting beyond Energy Savings

This  White Paper covers the business advantages of LED Lighting beyond energy savings – Employee Productivity, Tax Incentives, Property Value Increase, and more.

White Paper: Date: 3.31.15

Author:  Charlie Szoradi – CEO, Independence LED  (www.IndependenceLED.com)

Look at your bulbs to grow your business.

Business owners and managers often leverage the experience of their team members to add as much value as possible to their existing business or new business acquisitions with the least out of pocket expense. High Return on Investment (ROI) is naturally a top priority to increase Net Operating Income (NOI). Lighting is largely considered a cost center “liability” left to Facility Managers and not a profit accelerator “asset” for CFOs to explore during operations or in preparation for an exit. This White Paper identifies aspects of LED lighting that create a paradigm shift: Instead of beginning an analysis of LEDs with energy savings, this review focuses on the many other key business advantages of LEDs and ends with energy savings.

Advantages of LED Lighting: Increases that Add Value

  1. Increased Returns to Limited Partners
  2. Increased Business Sale Value at Exit
  3. Increased Employee Productivity
  • Better Concentration
  • Less Headaches and Eye Stain
  • Less Workplace Delays through Optimization
  • Less Workflow Interruptions for Changing Lights
  • Less Workflow Interruptions for Adjusting Light Levels
  • Less Workflow Distraction at the End of Bulb Life
  • Less Insect Removal and Cleaning
  1. Increased Customer Satisfaction
  2. Increased Revenue
  3. Increased Cash Flow
  4. Increased Use of Real Estate
  5. Increased Oversight of Operating Expenses
  6. Increased Workflow Knowledge
  7. Increase Tax Incentives

Advantages of LED Lighting: Decreases that Add Value

  1. Decrease Asset Hold Time to Exit
  2. Decrease Maintenance Cost during Ownership
  3. Decrease Air Conditioning Costs
  4. Decrease Energy Costs of Lighting

 

Advantages of LED Lighting: Increases that Add Value

  1. Increased Returns to Limited Partners

LEDs provide multiple benefits, outlined in this White Paper, that give businesses the ability to provide larger profit sharing payments to employees and investors. Since LEDs have one of the highest ROIs of energy reduction or renewable energy initiatives, the overall higher ROI for investors may increase their interest in participating in other investments. Since LEDs are in the “cleantech” sector, many institutional investors may also welcome the toxic free aspect of the new technology over the fluorescent tubes that have the hazardous mercury vapor. LEDs offer one of the most cost-effective ways to increase Net Operating Income (NOI) with the lowest Total Cost of Ownership (TCO).  Return on Investment (ROI) is a key consideration, and sustained increases in NOI over multiple years trumps first year savings in every case.

To asses TCO vs upfront cost, you can ask lighting solution providers to submit proposals that include TCO and then choose the winning product accordingly. For side by side comparison, you can give the providers data such as a 10 year term, 3% annual increase in cost of energy, and a baseline on installation. This way the differentiation in the technology stands out over other variables in proposals. Buyer beware. In many cases, a product with a lower initial cost may have a less efficient light output (lumens/watt) and a shorter warranty.

The savings from just a few extra watt delta may have a ripple effect over the life of the LEDs that is not immediately apparent unless you review a multi-year TCO. With energy costs increasing, on average over the past 50 years, at 3% annually, the benefits of more efficient technology build us significantly over time. The added savings adds up to increased returns for LPs as well as more appealing NOI for a lift at exit, described in the next section.

2.  Increased Business Sale Value at Exit

Over the past five years, as the efficiency of LED Lighting has increased and the cost has decreased, the payback time of installed LED technology is now often less than three years. The payback is even better for double and triple shift facilities such as warehouses, distribution centers, and factories. 24/7 areas such as parking garages, exit stairs and overnight security lighting are also excellent places to replace legacy lighting with LEDs.  As an example, a $100,000 LED investment may yield $36,000 in annual savings. While the ROI is 36% and the payback is just under 3 years, the business appreciation value could be $360,000 with a Capitalization Rate of 10%.  Naturally, the lower the Cap Rate the higher the multiplier impact.

This results at the 10% Cap Rate is more than a 3x multiplier on the out of pocket cost of the LED Lighting. A private equity firm pursuing the acquisition of Pep Boys asked Independence LED to retrofit the lights on the 200 locations that they were planning on selling via a sale lease-back. They did not see the value in 2012 of retrofitting the other 800 locations due to factors such as the real estate holding status, low cost of electricity in certain states and low utility rebate incentives at that time. The PE firm did see the advantage of the Cap Rate multiplier, since the reduced operating expenses of $36,000 per year on every $100,000 would increase the NOI by $36,000 and the property sale value by $360,000. The potential for 3x and higher multipliers is one of the ways that LED Lighting can work to make money rather than just save money. For this increase in business sale value, the longer the warranty on the LED products the better.

Prospective business buyers would naturally value longer recurring NOI lift than LED product with shorter warranties. This NOI path also opens an opportunity to assess businesses with a chain of locations by reviewing the Cap Rates in each metro market. Rather than the typical path to look at the high cost of electricity regions and high rebates as the starting point for an LED retrofit, the low Cap Rates (given the inverted return) will yield the higher multiplier on the LED investment.

Please note that this LED Lighting path is also viable with $0 upfront cost financing covered in this White Paper. By financing the LEDs with cash flow positive results the NOI increase and Cap Rate multiplier yields returns without any investment at all. The only loser is the utility company.

     3. Increased Employee Productivity

There are many factors under this section:

Better Concentration:

Brighter more consistent light can increase productivity and reduce errors. Experts agree that using the correct level of light reduces eyestrain and helps increase concentration. Higher concentration equates to higher productivity. In many businesses, lighting from the ubiquitous fluorescent tubes is not set at the appropriate level for the particular tasks. Since fluorescent ballasts installed around the world are not typically built for dimming capabilities, LED Lighting offers a key differentiation since many of the leading products are dimmable.

Less Headaches and Eye Stain

Fluorescent light comes from exciting the mercury vapor resulting in multiple flashes of light Hertz (Hz) each second. The normally unnoticeable 100–120 Hz flicker are largely undetected by most employees, but some people are more susceptible to the flickering than others and get headaches. Fatigue and concentration loss are also under review from the fluorescent tubes. Plus, Attention Deficit Disorder (ADD) may be exaggerated with fluorescent lighting.

“Although humans cannot see fluorescent lights flicker, the sensory system in some individuals can somehow detect the flicker. Ever since fluorescent lighting was introduced in workplaces, there have been complaints about headaches, eye strain and general eye discomfort. These complaints have been associated with the light flicker from fluorescent lights. When compared to regular fluorescent lights with magnetic ballasts, the use of high frequency electronic ballasts (20,000 Hz or higher) in fluorescent lights resulted in more than a 50% drop in complaints of eye strain and headaches. There tended to be fewer complaints of headaches among workers on higher floors compared to those closer to ground level; that is, workers exposed to more natural light experienced fewer health effects. [ Fluorescent lighting, headaches and eye-strain. A. J. Wilkins, I. Nimmo-Smith, I., A. Slater & L. Bedocs. Lighting Research and Technology, 1989. Vol. 21, 11-18]” Source: www.ccohs.ca/oshanswers/ergonomics/lighting_flicker.html

LED Lighting is Solid State Lighting (SSL) without flicker. This elimination of flicker can decrease headaches and eye strain and increase employee comfort with less loss of productivity.

Less Workplace Delays through Optimization

Bright Light where you need it helps reduce errors in the workplace. One the leading Distribution Centers for Anheuser-Busch, Gretz Beer Company, chose Independence LED to illuminate their new 320,000 sq ft. facility for reasons beyond the energy savings. The executive team wanted to ensure that the fork lift truck drivers would be able to clearly read the codes on the shelving and packaging in each aisle of the warehouse.

The task was to provide a minimum of 30 foot candles at the floor as well as on the vertical surface of the shelving. Fluorescent tubes and Metal Halide lamps that are commonly used in warehouses are omni-directional, so a significant portion of the light is wasted going up into the fixtures or out horizontally. For Gretz, Independence LED conducted the photometric analysis and then designed and manufactured custom “Aisle Light” fixtures with reflectors based on the exact ceiling heights and aisle widths.

The results are the right amount of light to optimize the process of selecting the right palettes. If any number  of the many fork lift truck drivers in any given day can identify, pick, and load a delivery truck just a little bit faster, the compounding benefits are positive for the business. See the Gretz Beer Case Study under the section Distribution Centers and Industrial Case Studies. Parallel to this, in the Monro Video Case Study, the technicians specifically speak about the advantages of having more light where they need it to service the vehicles, rather than needing to take the time to get supplement hand held lights.

Overall safety for industrial facilities is an obvious consideration. So, if areas are under lit, then employees need to pause and take more time than may be necessary to complete a task at a certain work station. These small delays compound over the course of days, weeks, months, and years, and they are reduced with more light across the long life of the LED Lights.

Less Workflow Interruptions to Change Lights

Commercial and Industrial facilities typically have one of four types of lighting replacement structures:

  1. Employee Do It Yourself (DIY) responsibility
  2. In-house Maintenance or Facility staff
  3. Outsourced Maintenance
  4. Landlord Maintenance as part of the lease
  1. Employee Do It Yourself (DIY) responsibility

As an example, the auto technicians at the Monro Muffler chain were responsible to change the lights at each of over 1,000 locations. When Monro chose Independence LED tubes for its retrofits starting in Connecticut, New York, New Jersey, and Pennsylvania, Independence LED learned that periodically changing the old fluorescent lights was a burden on the staff. When lights burned out, the technicians needed to stop their revenue generating work of replacing mufflers and brakes to bring out a ladder, change the tubes, and then return the ladder. Plus, the managers needed to take the time to periodically stock the extra tube inventory at each location. When the ballasts that power fluorescent tubes fail, the interruption in workflow is even greater given the need to re-wire replacement ballasts. For safety, shutting of the appropriate circuit breaker to replace the ballasts creates an added workflow penalty in that whole sections of a facility go dark during the replacement rather than just one tube or fixture. Plus, fluorescent tubes contain toxic mercury vapor so that have to be discarded under controlled disposal process. This adds more friction in the system and takes extra time. See the Monro Video Case Study under the section National Chain of Service Centers.

  1. In-house Maintenance or Facility staff

Changing lights and ballasts is often not calculated as a sub-set cost of salaried maintenance or facility staff. Their time could be better spent providing other services to the business, and the downtime of replacement impacts the workflow in the areas that have burn-outs. Drive over to the Home Depot. If the facility is not fully stocked with the right color fluorescent tubes and ballasts for each type of fixture, then an on-demand trip to an Electrical Supply house or Big Box Store like a Home Depot may be required. With a 15 minute drive each way at $60,000 per year salary, the $30 / hour turns a lighting run into a $15 cost before the cost of the lights and ballast. A fluorescent tube is less than $30 but the drive time brings it up to $18. The trip to buy a fluorescent tube just paid for a new LED Lighting tube.

  1. Outsourced Maintenance

With less burden on replacing burn-outs, the cost comes down for the lighting portion of maintenance services.

  1. Landlord Maintenance as part of the lease

In an office with tenants, when fluorescent lights burn out, employees typically need to call a supervisor that in turn calls the building manager or appropriate person. Replacements are typically conducted at night or after work hours, so as not to interrupt the employees when the ladders come out. Although the time needed to contact the supervisor and the subsequent contact to the building manager is very small, the follow up time is also a factor to make sure that it was completed in a timely manner. These small contacts compound over the course of a year and slow productivity like any interruption. The mental recovery time is a hidden penalty of any interruption for the employee and the supervisor.

LEDs last for over 60,000 hours while fluorescent tubes last for 15,000 hours with the latest technology up to 40,000. So, replacement is often 1.5 to 4 times more frequent with fluorescent tubes than with LED Lighting tubes. In an office environment with 12 hours of illumination per weekday, the LED lifetime is 3,120 hours per year. So, fluorescent tubes last about 20 years in an office.

Less Workflow Interruptions for Adjusting Light Levels

Many PE firms assume that “Smart Controls” either include a dimming switch or a motion sensor that turn lights off when people leave an area like a conference room or bathroom. Most fluorescent tubes are not capable of dimming given the configurations and ballasts that are ubiquitous on commercial ceilings. However, LED tubes are increasingly dimmable and a new generation of cost effective “Light Harvesting” is available. Light harvesting is a simple and elegant way to incorporate a photo cell that measures ambient light in a designated room or area. When natural light enters the space, through a window or sky light, the photo cell automatically dims back the LEDs and maintains the desired light levels in that space. As the sun passes across the southern sky this is an excellent solution in the afternoon when the sun is lower in the sky. The workflow savings comes from letting the smart control photocell work with the LED Lighting rather than an employee pulling down shades when it is too bright or turning off certain lights to meet their needs.

Less Workflow Distraction at the End of Bulb Life

When old fluorescent tubes are near their end of life, they start to cycle and flicker. In many cases the landlord or maintenance contractor may not change the lights until they are “dead” and completely dark. For employees the near death factor of motion in the ceiling is distraction that is difficult to quantify. Anything that can reduce distractions and keep employees focuses is good for business, and solid state LED lighting does not have end of life issues. In fact, the rated life of LEDs at 60,000 or more hours, is typically 70% of its existing output. LED Lights don’t die they just slowly fade away, so in an office after 20 years the LEDs will have more years to go. With computers at work stations instead of typewriters, each employee in an office in effect has a light fixture right in front of them with a glowing screen.

Less Insect Removal and Cleaning

Insects are attracted to Ultra Violet (UV) Light not just light in general. LEDs do not emit UV wavelengths, so they do not attract insects. Most fluorescent office fixtures are 2’ x 4’ or 2’ x 2’ with either Parabolic Lenses (like old style ice trays) comprised of open reflector cells where you can see the tubes or Acrylic Prismatic Lenses which are basically piece of translucent plastic that have little prisms to refract the light. In the case of Acrylic Prismatic, you may have seen a few dark spots that are often stink bugs or other insects that have died on the ceiling side of the lens surface. These dead insects reduce the professional image of any business and take time to periodically remove. LEDs do not attract bugs, so new LED tubes reduce the time wasted cleaning fixture lenses. Plus, a new generation of cost-effective LED Panels changes the ceiling style and increases any cleaning and dust build up on Parabolic Lens fixtures. See the Burger King LED Panel Case Study and the McCafferty Hyundai Dealership under Auto Dealership Group. When a leading meat processing company asked Independence LED to provide lights for its facility, they called several days after the initial fixture installation to ask if the LEDs were emitting anything that was killing bugs. Independence said “No,” and asked what drove the question. The food processor said that they would typically have to clean out bugs from a filter on a vent that was on the outside of the building. The vent near the new LED fixture did not have any insects on the bug screen. This was back in 2012, and it triggered the research into the reduced burden of insect removal by facility operators across the industrial and office sectors.

4. Increased Customer Satisfaction

For Monro Muffler, the managers speak in the video about the better LED light in the service bays to show customers what needs to be fixed on their cars. The managers also speak about a more appealing overall look to their service centers to attract more customers. For a top BMW dealership in Virginia, the Authorized Reseller speaks about the improved LED light quality of the showroom to sell the vehicles. Customers are able to see the vehicles more in the light of how they appear outside in daylight. See, the Authorized Reseller Testimonial under the Auto Dealership Group section. A Beer Distributor, such as Gretz Beer Company, can load trucks more quickly given the ability to select the palettes under brighter light. This improves the satisfaction of their customers that can pull the trucks in and out of the Distribution Center more quickly to get on the road and stock their stores.

     5. Increased Revenue

For Auto Service companies brighter light reduces the amount of time needed to repair vehicles. More new mufflers and more break changes in any given day yields more revenue. For Auto Service companies and Auto Dealerships more satisfied customers and possibly more customers overall equates to more revenue. For a Beer Wholesaler, more turns of fully loaded trucks equates to more revenue. For commercial office landlords or multi-family apartment building owners, “green” status via LEED Certification may also attract more tenants or garner higher rent per sq. ft. Less vacancy and higher rent naturally equate to more revenue.

6. Increased Cash Flow

Make money with LEDs. $0 upfront cost financing through On-Balance Sheet structures or Off-Balance Sheet Operating Leases can generate positive cash flow from the very first month. Plus a new generation of Lighting Service Contracts put the burden of ownership on the LED Lighting vendor not the business owner. With utility Rebates offered at high levels, the incentives provide net positive cash in hand if structured along with one of the financing paths. The rebates are then not a deduction against the cost of the new LED lighting but an added bonus to a cash flow positive engagement.  Less Safety Risks may yield lower insurance costs each month.

Common legacy lighting, such as incandescent, fluorescent, compact fluorescent, and metal halide, burn significantly hotter than LED lights. In 2014, Independence LED heard from an indoor agriculture business that was testing one the LEDs that the test was delayed because their grow farm building had caught on fire. Apparently, one of the existing metal halide bulbs exploded and the interior hot elements dropped to a table where they caught the surrounding material on fire. The building was damaged by the resulting fire. This triggered a research initiative by Independence LED and communications with a leading national insurance company. Metal Halide 100 watt, 400 watt, and 250 watt are common in industrial and warehouse facilities across America. If they are not replaced in a timely manner, the likelihood of a “Pop” explosion increases. Just as some insurance companies offer “good driving” discounts, the insurance market may consider discounts to businesses that switch to LED lighting.

7. Increased Use of Real Estate

In addition to Smart Controls, such as dimming, occupancy sensors, and light harvesting, on-board data capture is a compelling new way to leverage LEDs to optimize real estate. In the case of an industrial plant or warehouse, the on-board data capture modules can track the traffic flow and activity in any given area and feed the data back to dashboards for mapping. This type of mapping illustrates to a business owner which areas are used more than others. So, a manager can shift task areas or inventory accordingly to reduce flow redundancies. The results may lead to improved flow as well as the ability to reduce the needed footprint to sub lease the extra “found” space. Delivery companies like UPS have used logistics technology to learn that mapping routes through city streets with a bias to right turns helps save money on fuel and time, due to the ability to turn right on red. This data capture opportunity rifts off of what had been successfully dine in other industries. The more you measure…the better you can manage a business.

On the real estate front, at a micro level, LEDs last longer than legacy lights and many have warranties over 5 years (look for 10 year warranties). The long life means that businesses do not need to waste real estate on socking room for extra light bulbs and ballasts.  The storage areas are not typically very large, but over chains of stores or multi-location businesses, every sq. ft. adds up.

8. Increased Oversight of Operating Expenses

Measurement is the key to management. A new generation of intelligent building energy dashboards are available to tie in to LEDs and smart controls. Since lighting is not typically sub-metered, the cost of electricity is hidden along with climate control, computers, equipment, etc. According to the International Energy Agency, lighting represents about 20% of global electricity consumption. In the U.S., we use about 25% of the word’s power with only 5% of the population, and buildings use about 40% of our energy. The percentage of electricity used within a building for lighting is often around 30%. Schedule an Energy Audit or at very least a Lighting Audit to determine the consumption of electricity for lighting on your business each month and each year. Not knowing what you spend on such a major portion of your utility bills irresponsible to your partners and investors. You would not buy a car without a gas gage or odometer on the dashboard.  Get a free lighting assessment.

9. Increased Workflow Knowledge

In addition to the data capture opportunities described in the “Increased Use of Real Estate” section of this White Paper, workflow knowledge is power. Where people work is a key aspect of workflow. LEDs have the ability through smart controls to find out when and where employees are working. The occupancy and data capture tied to dashboard can give you the eye in the sky without Orwellian “Big Brother” cameras in every office. You can learn how long people are on lunch breaks, when they get in and leave for work. A new generation of managers will be able to reward dedicated employees, shift human capital assets to different teams, and use the data not just to police but to improve efficiencies.  LEDs are not the solution by any means, but they are a cog in the wheel of a new management machine.

10. Increase Tax Incentives

Federal opportunities such as the Energy Policy Act (EPAct) 179d are worth exploring. The Tax Deductions are up to $.60 / sq. ft. for reducing lighting loads by 50% or more. LEDs offer savings to reach the apex of incentives. However, Congress may not extend Federal incentives into 2015. As LEDs reach a tipping point in either 2015 or 2016 Congress may face pressure to bring back the policies. Since the U.S currently has a low adoption of commercial LEDs below 2% and Europe is and Asia are in the teens, we have some catching up to do.

Advantages of LED Lighting: Decreases that Add Value

  1. Decrease Asset Hold Time to Exit

If you can return more money to LPs and generate a higher sale value per the points in section #1 and #2 of this White Paper, you will most likely increase your ability to exit faster.

2. Decrease Maintenance Cost during Ownership

LEDs not only save time changing old bulbs, that is covered in section #3 of this White Paper, but LEDs reduce the need to buy the other bulbs. Inventory is currently a requirement for legacy lighting, because the burn-out rates are far less predictable than with LED Lighting. Maintenance product inventory is simply a drain on cash, and it is now unnecessary with LEDs.

3. Decrease Air Conditioning Costs

LEDs run cooler than legacy lighting, so they reduce Air Conditioning loads to cool buildings. The offset loss in the winter is negligible, because heating a building with lights is one of the least efficient means of climate control on the market. Different climates, ceiling heights, and heating degree days in a year will dictate the actual savings on AC loads.

4. Decrease Energy Costs of Lighting

LEDs provide an opportunity to reduce legacy lighting costs by 50% or more. This is often the top driver for the adoption of LEDs, but this White Paper focuses on many of the other reasons to change the lights, “What are you waiting for?” Focus on the ways that LEDs can MAKE More MONEY for your businesses. Do not just focus on the cost of the LED Lighting and the ROI, because the cost of waiting may be higher than you ever imagined.

Tactical Recommendations

Consider a “Rolling Retrofit.” Instead of changing all of the lights now, or waiting to change all of them down the road, start changing the old ones that burn out to LEDs. This way you roll forward over the next few years and purge the inefficient technology. At exit, you may have fully retrofitted business with LEDs.

Consider “Leapfrogging” over the next best fluorescent or improvement to legacy lighting. Sales representatives from major global lighting companies will make a case that the latest improvements offer a better ROI than LEDs. In some cases, that may be true, but look at the Total Cost of Ownership (TCO) and the rebate incentives. The ROI sprint may only generate a short-term win and the labor cost to change any lights is reason to go for the LEDs.

For New Constriction, go for the LEDs. Since the labor and cost of a light fixture is given at a beeline level, the costs are sunk. Those costs can go toward a major portion of the LEDs. Plus, with LED financing options, you can use the finds that would have gone for legacy lighting for a higher and better use.

Location, Location, Location:  Look at your portfolio for businesses in high cost / kWh locations like NYC and Connecticut. These areas often also have the highest rebate incentives. Place LED Lighting products in the solutions mix in the areas that make the most sense right now. Start with the 24/7 areas and the areas scheduled for re-lamping that will yield the highest returns.

Trust: Look for service groups that can leverage multiple years of experience in manufacturing, rebate administrator, installation coordinator, and financing to address your specific business needs.

Take Action: See the following one page Objectives file and start taking advantage of LED technology for energy savings and much more.

Take Action:

Sample Objectives Questionnaire: (Check more than one if appropriate)

Why are you considering Lighting Solutions? (For your own property or customer)

____Reduced Operating Expenses via Energy Efficiency

____Improved Light Output at equal or lower operating costs

____New Lights for Property Renovation, New Construction, or Scheduled Re-Lamping

____Rebates currently available

____LEED Building Certification or Energy Star Points

____Corporate Initiative for CO2 reduction

____A building energy use template to phase out inefficient lights

____Custom Fixture Design

____ Tax benefits via EPAct 179d (potential deductions of $.60 / sq. ft.)

 

What are your Key Decision Criteria?

____Efficiency

____Cost

____ Dependability

____Warranty

____Short-Term ROI

____Long-Term Lowest Cost of Ownership

____Made in America

____References

____ Monitoring Service after the Sale

 

What is your Acquisition Preference?

____Cash

____Terms

____Financing

____Operating Lease

(Note: For LED Lighting purchases other than cash third party financing partners need to review credit which may include three years of financials.)

 

Would you like us to provide any of these Support Services?

____Audit your building lighting

____Research and Provide Rebate information

____Manage Rebate Process

____Installation Coordination and Project Oversight

____Track Energy Savings

LED Lighting FIVE POINT Process

Phase 1: Analysis

  • Initial Meeting and Review of Objectives Questionnaire
  • Feedback on Financing Options based on Initial Credit Review
  • Preliminary Lighting Audit(s) to determine the different types of existing fixtures
  • Preliminary Utility Rebate reviews
  • Product Research and Recommendations
  • Draft Proposal by fixture type and run time in different areas
  • Photometric layouts upon request

(Since the process comes full circle, Analysis also includes measurement and verification, upon request, following installation. For retrofits over time, multiple areas, or multiple buildings this continuous process cycle is key to success.)

Client Review

Phase 2: Demo

  • Client guidance on which demonstration “DEMO” fixtures are requested for installation prior to acquisition. (Note: All demo purchases include a 100% Satisfaction Guarantee with full refund upon return within 60 days)
  • Demo fixture sourcing and/or production
  • Demo installation(s) and coordination upon request
  • Demo foot candle review upon request

Client Review

Phase 3: Acquisition

  • Client guidance based on the Analysis and Demo(s)
  • Comprehensive Lighting Audit(s) of the target areas approved for retrofit
  • Level Two Credit Review, if necessary, relative to order size and payback time horizon
  • Final Program Order Quotes
  • Support Product Integration (e.g. Battery Backups and Smart Controls such as Dimming, Light Harvesting, Motion Sensors, Demand Response)
  • Multiple Bidding on Installation ( upon request)
  • Final Financing Program Options
  • Utility Rebate Administration (Note: Rebate Pre-Approvals are increasingly required prior to Purchase Orders and Installation)

Client Review

Phase 4: Production

  • Sourcing and/or Manufacturing (Note: Purchases vs. financing require a 50% deposit)
  • Quality Assurance
  • Smart Control integration/coordination
  • Project Timeline Planning

Client Review

Phase 5: Installation

  • Pre-Installation Cross-Checks and Utility Rebate on-site inspection coordination, upon request
  • Installation Coordination and oversight, upon request
  • Before and After Installation Photographs and Digital Video for Case Studies and Press Releases (upon Client approval) to celebrate the energy smart initiatives.
  • Post-Installation Rebate Administration, upon request

Client Review

LED Lighting Bonus Round: Case Studies, Press Releases and Promotion upon request

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