American institutions of higher education spend $14 billion annually on energy. Of that, 31%, or just over $4 billion is spent on interior and exterior lighting. Upgrades to LED technology reduce lighting-related energy consumption by 50-80%. Across the US, colleges and universities are looking to a sustainable future by working to become carbon neutral; there are currently 677 signatories of the American College and Universities Presidents’ Climate Commitment.
As colleges and universities approach carbon neutrality through energy-efficiency initiatives (like lighting upgrades), we are engaging students. Sustainability is one of the fastest growing job markets in the country, yet most campus sustainability projects leave students out of the equation. Our model engages students in lighting upgrades, giving them real-world experience and making them more competitive for employment.
School districts in the United States spend $6 billion each year on energy – more than is spent on textbooks and computers combined! In some states, California in particular, schools, schools districts, and community colleges have money to modernize their facilities. Prop 39, Prop 51, and local bond measures made billions of dollars available to improve energy efficiency in schools. In these instances, we know it’s in schools’ best interest to pay for lighting upgrades so they keep 100% of the savings. We tweaked our model for schools to include project-based learning curricula and internships. In fact, we’re the only lighting company in the nation to couple lighting upgrades with learning. Our curricula are aligned with Common Core, Next Generation Science Standards, and Career Technical Education, and are designed for 4th – 8th grade. For high school, our internship program gives students real-world experience in one of the fastest growing job markets in the country – sustainability.
Property managers are challenged to achieve maximum returns on investment for their buildings’ owners. Additionally, every property is different and requires customized lighting solutions for its specific needs. However, across the board, lighting upgrades to LED technology improve illumination and decrease energy and maintenance costs. If done correctly, lighting upgrades will also improve the productivity and mood of tenants and increase safety of exterior spaces. We know that every square foot of your facility is a valuable asset and we want to help you maximize the returns that you get from your lighting systems. A lighting upgrade to LED technology will eliminate the need for service calls to change light bulbs and deliver significant cost savings every month.
Lighting upgrades to LED technology are the easiest way to increase the market value of your property. According to the Building Owners and Managers Association (BOMA), average total operating expenses are $8.45 per square foot; of that, utilities account for $2.35 per square foot and maintenance accounts for $2.11 per square foot. Lighting upgrades to LED technology will help you increase your net operating income by reducing utilities and maintenance costs. Our Lighting as a Service agreement may be treated off-balance sheet, which means you can increase the market value of your property for no cash out-of-pocket and no impact to your financial statements.
Over the next 15 years, the percentage of lights in the United States that are LED technology will increase from 3% to 89%. Like many sustainability-related technologies, the upfront cost of LED lighting systems is often the biggest hurdle to adoption. Lighting as a Service helps electrical contractors by eliminating capital constraints of their customers. By partnering with lumeo, contractors will learn how to utilize LaaS to help their customers upgrade outdated lighting systems to LED technology for no upfront cost and no risk.
The average American hospital is about 74,600 square feet. All inpatient health care buildings account for 1.6 billion square feet, which is about 3% of all commercial floor space in the US. Hospitals have a lot of interior and exterior lighting. Often times, interior lights are on 24/7! Lighting is responsible for 15% of total energy consumption in hospitals. Lighting upgrades to LED technology are an excellent way for hospitals to save energy and put more money toward patient care. With Lighting as a Service, hospitals can reduce total energy consumption by 7-12% for no upfront cost and no risk!
Municipalities around the country are passing Climate Action Plans and others just want to save money. Lighting upgrades to LED technology are a great way to save money and/or tackle energy reduction goals. Our Lighting as a Service agreements qualify as Energy Service Contracts, which in some states (like California), avoid the requirements for RFPs, RFQs, etc., and allow for direct procurement. For many cities, street lighting is the largest fixed annual general fund expense. Put simply, the lights must be on, and taxpayers have to pay for them. Some municipalities are taking advantage of the capabilities of LEDs to utilize the Internet of Things (IoT) to give their residents additional value like Wi-Fi enable streetlights. Whether it’s streetlights or other lighting, Lighting as a Service can help your municipality achieve it’s lighting needs.
According to the International Facility Management Association (IFMA), 10-15% of your time is spent on lighting-related requests. Imagine what you could do with 10-15% more time every day. LEDs last anywhere from 50,000 to 100,000 hours depending on the manufacturer; that’s 10-20 years with normal operating hours! If you upgrade your lights to LED technology today, you’ll be retired before you see another lighting-related maintenance request.
One of our Co-Founders started a 501(c)(3) nonprofit organization, so we have a special place in our hearts for helping other nonprofits. We understand first-hand that a dollar going to overhead (like electricity) is a dollar that cannot support your mission; Lighting as a Service can help you reduce utility costs so more money can support you cause. Places of worship are unique in that they’re generally penalized for their electricity consumption patterns – low during business hours, but high around services. Lighting upgrades to LED technology are an excellent way to decrease demand charges and Lighting as a Service can help you upgrade your lights for no upfront cost.
We are supporters of renewable energy like solar, but we also believe in the correct loading order of energy projects. In almost every instance, it is more cost- effective and more environmentally friendly to implement basic energy-efficiency projects before installing onsite energy generation. In fact, for every watt that a lighting upgrade saves, an organization will save an average of $3.00 off a solar system! We have helped organizations save 20-30% of their total solar installation costs by completing a lighting upgrade to LED technology first. In some instances, it is possible to consolidate lighting upgrades and solar installations by combining Lighting as a Service with Power Purchase Agreements or solar leases.