Has your business been considering the many benefits of an LED retrofit? Are you held up on the up front costs associated with it? If so, lighting as a service may be an option worth considering. The lighting industry has been moving in this direction and expects to do so for years to come.
What is lighting as a service (LaaS)?
Lighting as a service is an all-inclusive subscription-based pricing model geared at making LED lighting an option for any business owner, facility manager, or service manager. This pay as you go model does not require any high up-front payment and instead breaks these costs out over time making it a much more affordable option.
Instead of putting up capital investment for a lighting upgrade at the beginning of your project, you can turn the investment into an operating expense for the company. With only a portion of the money you save on reduced energy bills, you budget a monthly expense payment for your lighting. It’s effectively a way to get the advantage of the lighting upgrade you’ve been considering and potentially making it cash-flow positive from day one.
Lighting as a service dramatically helps those individuals in the facility or plant management field, affording you the time to oversee other departments and capital projects while knowing your lighting is well-managed and maintained. You also won't have to worry about light bulbs burning out before big events and random large outages since you'll have a built-in scheduled maintenance program, if desired.
LaaS in the Future
The LaaS market is currently in its infancy. Global revenue for these services is estimated at just $35.2 million in 2016; most existing projects are pilots and test cases. But as more lighting companies, as well as IT integrators and facilities management service providers, enter this market, and as companies refine their business models and offerings to entice customers, LaaS will grow rapidly. Through 2025, lighting-as-a-Service is forecast to grow 52%, to a total of $1.6 billion in 2025, with North America representing half of that revenue. LaaS is movin’ on up.