Current economic conditions are lowering occupancy for some commercial and industrial facilities, yet energy bills aren’t necessarily dropping to alleviate cost burdens. This makes it an ideal time to consider LED lighting upgrades and other energy efficiency measures that may reduce energy costs along with CO2 emissions.
Energy efficiency-as-a-service helps organizations reduce their energy use while making a positive impact on the health of the planet. It does this through financing that enables commercial or industrial businesses to benefit from energy efficiency upgrades while avoiding a capital outlay.
Reduce energy costs with upgrades
Lighting is often one of the costliest budget items for a typical commercial organization, and LED lighting can cut energy overhead costs in commercial buildings.
Other areas should also be considered, including:
- Boiler and chiller replacement
- HVAC replacement
- Water efficiency
- Combined heat and power
- Compressed air upgrades
- HVAC controls
- Building management systems
- Motor and pump upgrades
Financing provides benefits
How does an organization pay for these upgrades? An energy efficiency services provider would fund 100% of a project’s cost, take title of the equipment and pay for ongoing maintenance and monitoring. The business or organization, in turn, pays a service charge for the realized energy savings.
These initiatives provide a variety of benefits, including:
- Avoiding a capital outlay for new equipment
- Enhanced reliability of operations
- Energy savings that pay for projects
- Agreements designed to be off-balance sheet financing solutions with regular payments similar to standard utility bills or Power Purchase Agreements (PPA)
- Service provider pays for all project design and implementation costs, enabling customers to conserve scarce capital funds for investment in other areas of their core business
- Service provider typically pays for periodic maintenance services to ensure long-term reliability and performance of the project equipment
Estimate your budget savings with LED lighting upgrades
Lighting is a major energy use that may represent a huge part of monthly energy bills. If tight budgets are impeding progress, cost savings may be found by switching to LED technology.
How much can be saved? A lot. By 2027, the U.S. Department of Energy estimates that LED lighting could conserve up to 348 terawatts of energy, which equates to $30 billion of savings at current pricing levels.
To learn what your business could save, use this LED lighting savings calculator: