Launchpad Engagement Letter

Independence LED is your lighting solutions partner with American made LED manufacturing experience and insight.

Lighting Solutions Explained: Independence LED is pleased to provide objective and actionable intelligence to illustrate the advantages of lighting upgrades for all or a portion of your facility or multi-location enterprise.  Lighting is increasingly complicated given the changing product specifications, smart controls, utility rebates, tax incentives, energy codes, financing options, installation considerations, warranty protections, and other consideration.  This is not a sales proposal but an initial 90 day service engagement that provides you with the option to continue working with us or to bid out the lighting to other manufacturers or value added resellers. While we are an award-winning US manufacturer of LED lights with the industry leading 10 year warranty, we do not make lights for every type of application. In certain cases, the lights that we do make may not be the most appropriate for your facility. Our turn-key solutions are technology agnostic for retrofits and new construction for private sector business owners as well as public sector entities at federal, state, and municipal levels. In short, we work to find the best illumination solutions for you.

Why Now? On average, lighting accounts for 30% of commercial energy consumption, and the latest technology can reduce your lighting operating costs by 50% or more. Improvements in efficiency and longevity for technology such as Light Emitting Diodes (LED) and reduced equipment costs can now yield high Return on Investment (ROI) with paybacks in less than 3 years. Plus, $0 upfront cost financing programs can deliver cash-flow positive results from the start. Lighting is typically not sub-metered, so auditing is a foundational aspect of our service. Measurement is key to management. Understanding the economic impact of your ceiling and the advantages of new technology often requires a trusted auditor and advisor.

Why Sign this Engagement Letter? Your time is valuable and so is ours.  Signing this letter does not obligate you in any way to make a payment to Independence LED  for the services outlined below or obligate you to purchase products from us. Signing this letter lets us know that you are seriously considering new lighting for a retrofit or for new construction,  if and when the energy savings, ROI, and other metrics meet or exceed your performance targets.

Our Services:

Our services may include any of the following, subject to the complexity of your facility:

Section 1: Comprehensive Lighting Audit We go beyond a typical lighting “count” to provide the complete information needed for you to make intelligent choices.

1.1: Lighting Schedule – List of fixture types with details including: Wattage, Color, Lens , Beam Angle, Reflectors, Rated Lumens, Directional Lumens, Rated Life, Ballast Factor,  and features such as Dimming, Occupancy Sensors, and Battery Back-ups

1.2: Fixture count by property section

1.3: Run Time weekly hours of operation by area

1.4: Sensor review by fixture and/or area with natural light for potential light harvesting

1.5: Ballast Analysis – Type and Power Factor with spot checks for fluorescent fixtures (This is key for potential retrofits with ballast compatible “Plug and Play” options.)

1.6: Age of Fixtures and prior relamping schedule (This is key for analysis in the rolling retrofit options)

1.7: Fixture Lens condition (This is key for possible replacement for chipped or damaged lenses)

1.8: Ceiling height and fixture mounting height from finished floor and exterior mounting conditions

1.9: Fixture spacing

1.10: Foot candle spot check averages directly underneath fixtures and between fixtures

(The data collection for 1.8 – 1.10 is key for potential photometric layout analysis given that technology such as LEDs may have more directional light than existing conditions.)

Section 2: Smart Controls Review of daily usage in different areas, such as time in aisles for Distribution Centers, to inform opportunities for occupancy sensors. This is different than the existing run time data that may be in excess of the illumination needs.

Section 3: Utility Rebate Incentives Analysis of Rebate opportunities with the existing utility companies and comparison to alternative utility providers. Note that most utility companies have both prescriptive and custom rebates that have different incentives by type of retrofit and smart controls.

Section 4: Specification Guidelines Recommendations for Specifications on retrofit options taking into account performance data per the lighting needs of the facility and bid approaches such as Total Cost of Ownership and Warranty protection vs lowest commodity cost of equipment.

Section 5: Economic Analysis with Multi-Phased Plan Perspective on comparative performance is key to understanding if and when action is applicable and desirable. Our Five Star Report includes analysis such as your lighting cost / sq. ft. relative to industry averages by property type. We also provide the economics to illustrate the savings potential with industry average price points on LEDs and smart controls so that you can review ROI and TCO. This economic section of our report highlights which areas such as rooms with southern exposure with natural light may benefit from photocell light harvesting over other areas. By evaluating the run times, we also provide guidance into which areas at lower levels of use do not warrant a retrofit at this time but may fall into a “Rolling-Retrofit” Phase 2 part of an overall plan when the existing lights burn out. In this section we review operating use as well as lighting, so if there are areas that need more light than existing, we can factor in the advantages to increase productivity and impact the bottom line. The overall intention of this section is to help guide a bid or proposal request so that you focus on the highest and best use of available technology today to reduce cost and increase performance.

Managing the Complexity:

Here are multiple categories and sub-sets that illustrate how Independence LED manages the complexity of commercial illumination:

Independence LED Existing Condition Analysis:

  • Existing Lens Condition
  • Existing DeLamping Potential
  • Existing Mounting Height
  • Existing Lateral Spacing
  • Existing Foot Candles
  • Existing Hours of Operation
  • Existing Ballast Power Factors
  • Existing Natural Light Integration
  • Existing Electric Utility Rates
  • Existing Metering Conditions
  • Existing Voltage

 

Independence LED Product Selection Considerations:

  • Wattage
  • Color and Lens
  • Beam Angle
  • Reflectors
  • Rated Life
  • Dimming
  • Light Harvesting
  • Directional Lumens
  • Occupancy Sensors
  • Battery Back-ups
  • Rebate Impact on ROI
  • Warranty

Independence LED Performance Analysis: 

  • Return on Investment (ROI)
  • Internal Rate of Return (IRR)
  • Net Operating Income (NOI)
  • Total Cost of Ownership (TCO)
  • Green House Gas Reduction (CO2)

Independence LED Support Services:

  • Lighting Audit
  • Project Management
  • Photometric Modeling
  • LED Product Match-Making
  • Multi-phase Proposals and Planning
  • Rebate Administration
  • Financing Program Options
  • Installation Coordination
  • Pre and Post-Retrofit Measurement & Verification

Our Expectations from Your Team:

We hold our client information in confidence, and for us to provide the most effective services, we will expect that you will provide the following if and when it is of interest to you or available:

  • Point Person for us to communicate with on a weekly basis
  • Access to the facility at mutually agreed times
  • Performance target for the project (e.g. payback time in under 3 years)
  • Reflected Ceiling Plans
  • Lighting Schedules
  • Recent Utility Bills

If you would like to receive Utility Rebates

 Action: Complete Utility Rebate Application

If you would like to review financing of Lighting as a Service (LaaS) options

Action: Complete Credit Application

If you would like to review installation options from third parties

Action: Complete Insurance Questionnaire

If you would like to review Energy Policy Act (EPAct) 179d Federal Tax Incentives

Action: Federal

Services beyond the Launchpad:

If and when you choose to purchase new lighting from someone other than us, you may still chose to work with us on support services at your discretion:

Bid Documents with lighting audit information (Subject to Bidding complexity)

Tier 1: 1 – 5 or less different types of lights: 1,500

Tier 2: 6 – 10 or less different types of lights: $2,500

Tier 3: Over 10 different types of lights: $3,500

Rebate Administration:  30% of earned rebate

Installation Coordination: 10% of 3rd party costs

Project Management: 5% of total equipment and labor

If and when you choose to work with us as a turn-key provider of your lighting solutions beyond this initial engagement, the breakdown below identifies the key aspects of our compensation:

Bid Documents with lighting audit information: N/A $0

Rebate Administration:  15% of earned rebate

Installation Coordination: 5% of 3rd party costs

Project Management: 0% of total equipment and labor

The summary and execution are on the following page.

 

Launchpad Engagement Summary: Our Launchpad Engagement illustrates opportunities and serves as a navigation tool to help guide you across the increasingly complex lighting marketplace. Our underlying goal is for you to dedicate the least amount of money to generate the most savings and overall advantages for your properties.

Thank you for this opportunity.

Charlie Szoradi

Chairman and CEO – Independence LED Lighting, LLC

Charlie@IndependenceLED.com  Direct: 610-551-5224

Launchpad Engagement Acceptance: The undersigned accepts this engagement as outlined above with the mutual understanding that signing this letter does not obligate the undersigned or his/her company in any way to make a payment to Independence LED for the services outlined above or obligate the company to purchase products from Independence LED.

Signature: _________________________________

Name: ____________________________________

Title: _____________________________________

Company Name: ____________________________

Email: ____________________________________

Tel #: _____________________________________

Property Address: ___________________________________

Additional Property Addresses:

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More Addresses if relevant: