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Lighting As A Service

Learn about the creative ways we can work with your organization to finance a conversion from your existing lighting system to LED.

What is Lighting As-a-Service

Lighting as a service is an all-inclusive subscription based pricing model geared at making LED lighting a potential 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. 

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How is LaaS Different Than Other Procurement Methods?

Cash

Requires a large upfront expense. While you have full ownership of equipment, your service, support, and upgrade options are virtually non-existent. 

Accounting Treatment: Capital Expense

Ownership: Full Ownership

Services/Support: Limited Warranty

Upgrade Options: None                                                                                       

Lease/Loan

Reduces upfront expense but is still a capital expense and likely will include interest over the time of the loan. Still offers no support beyond your warranty and no upgrades built in.

Accounting Treatment: Capital Expense

Ownership: Ownership (potentially via a 3rd party)

Services/Support: Limited Warranty

Upgrade Options: None

Saving Agreement

Uses savings to pay for new equipment over an extended period of time, but requires complex modeling, measurement, and verification.

Accounting Treatment: Operating Expense

Ownership: 3rd Part Ownership

Services/Support: Maintenance & Limited Warranty

Upgrade Options: Shared Savings Agreement

LaaS

Pay one monthly fee for new equipment over a 3-7 year time period. Includes performance guarantees.

Accounting Treatment: Operating Expense

Ownership: 3rd Party Ownership

Services/Support: Maintenance and Full Warranty 

Upgrade Options: New Service Plan                                                             

How Does It Work?

Lighting as a service provides the ability for customers to implement turn-key LED lighting retrofit and conversion projects utilizing a subscription model and eliminates the need for upfront capital costs.

Efficient Equipment

LaaS will give you access to top of the line equipment without the upfront costs. It may seem like LED lighting technology is moving too fast to keep up, but Lighting as a service also solves the problem of missing out on the latest improvements to LED. There are options  that include the price to upgrade to new technology in your monthly fee.                                                                                                                                                                                                                                                           

Savings on Energy Bills

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 payment for your lighting. It’s effectively a way to get the advantage of the lighting upgrade you’ve been considering and making it cash-flow positive from day one.                                                                          

Choosing The Right Partner

Why Partner With Stouch Lighting

Stouch Lighting's LAAS program uses state of the art LED lighting technology, radical process improvement and new market approaches to provide our customers access to energy efficient products and services. Conventional financing requires customers to engage with a complex web of legal, accounting, technical, and financing decisions. Our program streamlines that complexity on the backend, reducing transaction costs by 10 times. This improves the customer economics and reinvents the customer experience.

Frequently Asked Questions

Lighting as a Service (LaaS) is a service delivery model in which light service is charged on a subscription basis rather than via a one-time payment.

Your monthly payments will be pulled automatcally on the same scheduled day each month via Automatc Clearinghouse (ACH). Payments will occur so long as the system performance conditons laid out in your Service Plan legal agreement, are met.

If the system fails to meet the agreed upon criteria, called an “underperformance event.” Stouch Lighting will have 30 days to fix the issue. If the problem persists, you’ll receive a credit for some porton of your next monthly payments until we get everything fixed.

No problem! Lighting As-a-Service has no restrictons on how you use your space or your lightng system. We just focus on the performance of the system when it is in use.

If you decide that you would like to add on additonal buildings or technology types, we can add them in seamlessly with a quick addendum to our Master Services Plan.

You have a few options at the end of your agreement. You can choose to extend your agreement, upgrade to replace your system with the latest and greatest technology and begin a new service agreement, purchase the equipment outright, or terminate the agreement and allow Stouch Lighting to choose to either remove the equipment or abandon it in place.

If you sell your building or end your lease, you can either assign the Service Plan to the new owner with Stouch Lighting's LaaS partner's approval or take the technology with you to your new locaton. Alternatvely, you can pay a cancellaton cost to terminate the Service Plan and take title to the technology.

Stouch Lighting's LaaS Financing partner or one of its subsidiaries will hold title and ownership of the technology during the Service Plan term, and will file a UCC lien on the technology, but not on your real estate. All risk of ownership for the equipment is transferred to our partner

Our Service Plan is designed to provide a performance-based contract which may be treated as an operatng expense, however the final decision on accountng treatment is determined by the customer.

You’ll provide certficates of insurance for Business Property Coverage including fire, theft, Business Interrupton and extended coverage for the full Replacement Cost (RC) of the equipment including installaton; and Business Liability Coverage with a $1,000,000 limit.

Stouch Lighting's LaaS partner will handle all taxes on the service plan for you. Sales tax may be due on each monthly payment, depending on state policy. Listed monthly payments do not include sales or property tax. Property tax is a business cost to Stouch Lighting' LaaS partner and is passed along to you at no markup each year.