Your lighting as a service contract is both business savvy and flexible: When you upgrade to a smart lighting system, you save money and reduce your electricity bill by up to 70%. With the added bonus of customized LED lighting options, you’re probably wondering what you need to look for in your contract for lighting as a service.
In this article, you’ll learn about subscription-based lighting services, how they benefit business owners, and what to look for in your contract.
What is Lighting as a Service?
Lighting as a service, also known as LaaS service, is a subscription-based option that allows businesses to invest in an LED lighting retrofit. Rather than requiring a large initial investment, LaaS first enables businesses to save money on their power bill, and then use part of that savings for a monthly payment for the service.
There’s no initial investment required for LaaS, and it’s cash-flow positive from the start—a win-win for business owners. Additionally, the LaaS market is predicted to grow 50.4% through 2025.
The Important Parts of Your Lighting as a Service Contract
If you’re investing in LaaS, you want to make sure that your provider maintains the lighting as part of your contract. As one example of a contract, new LED lighting is installed over the course of a three-year-plus period could include maintenance and warranty. Though it’s standard to include upkeep in service agreements, it’s just as important to make sure the verbiage is present.
If maintenance is part of the deal, your LaaS provider should also offer in-house installers and electricians. Maintenance vastly simplifies the installation process by leaving these responsibilities in the hands of professionals. Parts and labor are also handled by your provider, per your agreement.
2. Lighting Upgrade
Working with your lighting company also helps keep your space top-of-the-line and using the most environmentally friendly lighting options. Per your agreement, your lighting provider will install the latest LED energy efficient lighting, launching cost savings and simplifying the upgrade process.
At the end of your agreement, you’ll also have the option to include upgrades where needed. If you’ve liked the service, you’ll be able to continue the contract. You may also have the opportunity to own the lighting system at the end of your agreement.
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Additionally, with LaaS, your upgrade is also considered an operational cost, rather than a capital expense. Operational costs are part of day-to-day operations, whereas capital cost is an investment that provides a future benefit to the business. The benefit of LaaS is that you don’t need any upfront capital.
3. Performance Monitoring
Performance monitoring is just as important as maintenance and upgrading your lighting technology: In your contract, keep an eye out for how your vendor reports on performance monitoring.
An inefficient lighting system undercuts the value of the lighting itself. Lightning technicians use a few different tools to monitor lighting efficiency:
- Measuring lighting power density in watts over a square foot of space
- Lumens, or how much light a lamp emits, help measure light output against how much energy is consumed
- Footcandles, also measured by lumens, determine how much light lands on a surface
When measuring your lighting power density, your vendor will measure the results against the current ASHRAE 90.1 standard to get a reading on performance.
4. Ongoing Service
You should have information on your full service, from the beginning of the timeline to the end. Important information includes dates for delivery and installation, and the inclusion of spare parts for your daily use.
Unforeseen circumstances can delay work, even with the best of intentions. Your contract should indicate how delays are handled, when you receive notice, and adjustments in the timeline.
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5. Eventual Ownership
Are you interested in owning the lighting system at the end of your contract? This is also an option, though your vendor owns the lighting system during your commitment to the company. Your monthly payments can go toward hassle-free maintenance and upgrades, and eventual outright ownership of your new lighting.
If you decide to terminate your contract with your vendor at the end of the service period, you’ll have an entire up-to-date, energy-efficient system in place. Moving into the future, you’ll also still have the benefits of energy savings and trust in lighting you know was installed and maintained well.
Shine the Spotlight on Your Business With Lighting as a Service
Lighting as a service provides a simplified, one-contact, subscription-service upgrade option for businesses and other ventures looking to improve their operations.
Airis Energy, offering Miami-Dade lighting as a service contracts, and Florida-wide, helps with audits, installation, and ongoing maintenance. Learn more about how LaaS can brighten your future.