04 Sep What is Lighting as a Service
Lighting as a Service, commonly referred to globally as ‘LAAS’ is the term given when a lighting vendor provides an LED upgrade for a client without any upfront, or capital expenditure (Capex) requirement from the end user. With the right LED technology, energy savings of up to 75% can be achieved. For commercial clients this pool of savings can be quite substantial, and offers a great opportunity to have a lighting company actually make all of the upfront investment to cover the hardware and the installation costs and as part of an ‘as a service’ model, take on board any warranty or maintenance issues which could arise in the future during the service agreement (typically five years) . In cases where facilities are running 24/7 or have a large light count of very inefficient lighting, an ECI LED upgrade may also generate free cash flow for clients, even after we are paid every month from your utility savings.
In other areas of business, the ‘as a service’ business model is something which is quite prevalent. For example, Hardware as a Service (HaaS), Software as a Service (SaaS) and Platform as a Service (PaaS). Over recent years, in line with global trends lighting has also fallen into this category as some end users don’t particularly want or need to own or invest in LED lighting, they just want the benefit of the light without any maintenance hassle!
In 2017, the ECI Lighting Prelux range had a failure rate of just 0.34% (on tens of thousands of products installed), so we are very confident that once the initial installation is complete, the chances of anything going wrong is very slim. With that said, we offer a full five year on-site warranty (new replacement LED including re-installation) on our energy efficiency service projects to give a client the full peace of mind that they have now outsourced all of their operational risk in relation to lighting on their premises and that ECI are fully invested to help ensure the smooth business operations of our clients.