It’s no secret that innovations in LED lighting – particularly integrating intelligence and controls into lighting systems – are accelerating adoption of this technology among leading industrial facilities. With lighting energy savings of up to 90%, improved light levels, and no maintenance, these systems are rapidly transforming the industrial lighting landscape. Another innovative element of the widespread LED adoption is the broad range of financing strategies and incentives that can be leveraged to make a facility-wide lighting upgrade cash flow positive from Day One.
Our recently released white paper explores the various financing and incentive options for intelligent LED lighting, including:
- Utility incentives,
- On-bill financing options,
- Federal tax deductions, such as EPAct and depreciation allowances,
- Traditional capital lease and finance-to-buy programs,
- Shared savings programs, and
- PACE financing.
Our advice? Download the paper for more detail, but be sure to do the following:
- Understand what incentives and rebates you are eligible for at the outset of a project. These savings reduce up-front costs, making highly efficient lighting that much more compelling and affordable. Lower acquisition costs shorten paybacks times, increase ROI, and further simplify the investment decision.
- Pursue multiple financing measures for a single lighting upgrade project. For example, leverage a utility incentive, EPACT/Abandonment credit (be sure to identify a qualified EPACT consultant), and finance the remainder of the project cost with a lease or Shared Savings program. These strategies can all work together to defray a substantial amount of the upfront cost, and make repayment easy and inexpensive.
Intelligent LEDs are the fastest growing segment of the industrial lighting market and are widely proven in a range of industrial settings. Now, innovation in financing strategies among utilities and in the private sector is making the acquisition process that much more efficient. By using rapidly accumulating energy savings to fund the project, the ability to lock-in a lifetime – often 20 years or more – of extraordinary energy, maintenance and bottom-line savings, the financing picture has never been brighter.