Zero upfront cost, no maintenance cost,
pay as you save with LaaS
The lighting industry is advancing rapidly with the advent of energy-efficient solutions such as LED lighting, smart lighting controls, lighting management systems, etc. Human-centric lighting, networked wireless lighting controls, real-time data tracking, and space utilization among other IoT-powered features, in addition to energy savings, have improved productivity and ambiance of a modern workspace. Even though the need for efficient lighting solutions, installation, maintenance, and other related services are immense, the one-time payment model is not suitable for most businesses due to the high up-front investment required for the lighting upgrade. And most emerging businesses would prefer to spend this cost on strengthening other operations, rather than funding a lighting upgrade.
Lighting as a Service (LaaS) provides a better alternative to address financial and upgrade concerns. LaaS is the future of lighting as this model forecasted to reach USD 820 million at a CAGR of 47% by 2023 from only USD 78 million in the year 2017. Mysupplier’s Lighting as a Service solution ensures that your infrastructure is upgraded to the latest lighting technology that empowers your business with the best ROI, impeccable service, and better energy-saving potential with no upfront investment.
What is Lighting as a Service?
Lighting as a Service is a third-party subscription-based business model that eliminates the need for a huge initial investment in lighting systems. This helps businesses realize better energy savings and improve cash-flows that are critical to run the business smoothly and grow further. The service provider takes ownership of all your lighting needs: upgrading to LED lighting systems, design, audits, recycling, technical assistance, operation, and maintenance to ensure better performance throughout the subscription period.
The subscription price is determined based on performance guarantees on energy savings and illumination levels and accounted as an operating expense and not as a capital expense. The subscription charges are always less than the monthly energy and maintenance costs, assuring monthly operating savings and immediate positive cash-flow for your business.
The LaaS Cycle
Why LaaS?
From dynamic retrofit solutions to high-end IoT-powered lighting, Lighting as a Service offers a wide range of services to meet all the business requirements during the subscription period. Unlike a typical leasing model, LaaS payments are based on the units of energy saved, improving savings immediately. The scalable financing model of LaaS also accelerates rollout and reduces the cost of delaying implementation, enabling greater ROI potential.
Zero Capex and instant
savings
Energy Service Agreement (ESA) is a pay-for-performance financing solution that allows you to implement energy projects with zero capital expenditure.
No impact on the balance
sheet
LaaS is an Off-Balance Sheet (OBS) financing model and does have not have any balance sheet impacts, preserving your debt capacity and credit rating.
Long-term performance
guaranteed
The service provider is responsible for the operation and maintenance of the installed lighting systems, enabling you to focus on critical business operations.
Improved bottom line
and savings
The price per unit of savings is always set below the company’s current utility price, resulting in an immediate reduction in your operating expenses.
LaaS: How it works?
Under Mysupplier LaaS program, we perform investment-grade light audits of your existing lighting system, design and develop energy efficiency measures, install the new lighting system, and maintain it until the subscription period expires. The implementation model may vary depending on certain parameters like scope, type of organization, type of upgrade, proposed lighting solution, incentive options, and other financing models. When the contract period is over, you also have the option to take ownership of the complete lighting equipment or continue with the subscription.
Since the subscription cost is usually less than the current energy and maintenance expenses, the business owner is assured monthly savings starting from the first month of subscription. See an example of how your lighting upgrade pays for itself.
| System Parameters | Existing System | Upgraded System |
|---|---|---|
| Electricity Rate ($/kWh) | $ 0.20 | $ 0.20 |
| Monthly Energy Usage (kWh) | 60000 | 25000 |
| Monthly Energy Cost $ | $ 12,000.00 | $5,000.00 |
| Total Lighting Quantity | 12,000.00 | 1200 |
| Monthly Maintenance Cost $ | $ 750.00 | $ 200.00 |
| Monthly LaaS Subscription Cost $ | - | $ 5,500.00 |
| Total Monthly Lighting Cost $ | $ 12750.00 | $ 10,500.00 |
| Total Monthly Lighting Savings $ | - | $ 2,250.00 |
| Average Contract Period (Months) | - | 60 |
| Total Subscription Cost $ | - | $ 330,000.00 |
| Total Savings for End User $ | - | $ 135,000.00 |