Lighting-as-a-service (LaaS) is a relatively new business model in which the client and the provider agree on the installation and upkeep of lighting systems. The client subscribes to the provider’s services and pays for the installation and upkeep of lighting systems every month. The client doesn’t own the lights, but they don’t have to spend out of pocket for them.
This model is expected to help businesses and organizations in many ways, from reduced maintenance costs to a minimal carbon footprint. Below is an in-depth look at its benefits.
1. Zero Upfront Costs
Lighting-as-a-service companies deliver LED lighting solutions, which are popularly known for their energy efficiency. That said, they don’t come cheap—especially when a business requires hundreds of them to light every nook and cranny. Though prices today are much lower than they were a decade ago, these efficient lighting systems can still cost double digits apiece in some places.
Eliminating upfront costs is LaaS’s main selling point. In exchange for retaining ownership of the equipment, the provider delivers quality installation and maintenance services for a monthly subscription fee. The price depends on a range of factors, from the number of light fixtures (also called luminaries) installed to the electricity usage.
2. Energy-Efficient Lighting
The earliest record of LaaS in action was in the early 2010s when a U.K.-based organization signed a 15-year contract with a local LaaS provider. For a monthly fee, the provider would offer the latest efficient LED lighting technology at the time. In fact, the business model was the result of mounting pressure among commercial entities to do more for the Earth.
LED lamps during this period were expensive, but no one could deny the long-term savings they bring. Figures vary by source; one study by the University of Michigan in 2023 revealed that LED lighting was 18% to 44% more efficient than fluorescent tubes.
The secret to LED lighting’s efficiency lies in its physics. Unlike traditional lights such as incandescent bulbs, LED lamps convert most of the delivered energy into light and emit far less heat. Additionally, reduced heat emissions result in the lamps lasting much longer.
3. Cost Savings
Lighting accounts for up to half of a business’s energy cost—and for good reason. Many commercial properties keep their lights on 24/7 as a means of deterring trespassers and other criminals. Well-lit areas help security cameras and personnel get a good look at any suspicious figures loitering about.
Incandescent bulbs aren’t ideal for round-the-clock lighting, as prolonged use generates heat that degrades the filament faster. Fluorescent lamps are somewhat better, but their high energy consumption is an issue. Meanwhile, LED lights supplied and maintained by LaaS providers are perfect for the job.
The total savings depend on four factors:
- Lumens – the amount of light output
- Wattage – the lamp’s energy consumption
- Active Hours – the amount of time the lamp is on
- Cost Per kWh – the cost of electricity in the local area
The relationship among these factors is directly proportional. However, LED lights have the advantage of producing more light for less energy than their non-LED counterparts. An 18-watt LED lamp emits as much light as a 100-watt incandescent.
4. Safe Maintenance and Upgrading
Under the LaaS model, the provider is responsible for maintaining and upgrading a client’s lighting systems. In most cases, the client’s obligation is to keep up with their monthly payments to continue needing the provider’s lighting services, making for a worry-free experience.
Replacing a burnt-out LED light (though it’s more like they lose their brightness over time) may seem straightforward. You’d be correct if the replacement will be done at home, but it’s not as simple in a commercial setting. For instance, warehouse ceilings are dozens of feet off the ground, requiring specialized equipment to reach them.
LaaS works for businesses that don’t maintain in-house technical maintenance staff or are ill-equipped for such tasks. LaaS companies maintain a team of experienced hands tasked with repair and maintenance work, as well as lighting upgrades. Leaving the job to the professionals ensures the safety of everyone involved.
5. Smart Lighting
As if LED lighting isn’t energy and cost-efficient enough, it can become much more efficient by integrating smart technology. One well-known approach involves the Internet of Things (IoT), connecting all lamps to a network that can be regulated by an app or software. IoT-ready functionality lets you do a lot, such as:
- Remote activation of select lights
- Energy consumption tracking
- Environment-based activation
- Quick troubleshooting
Smart lighting isn’t limited to offices and warehouses. Public utilities such as street lighting also benefit from it, enabling lights all over the city or community to be switched on and off on time. Many LaaS providers offer smart lighting as an upgrade.
Conclusion
Despite being relatively new, LaaS has quickly grown into an indispensable service. Cash-strapped businesses and organizations will benefit from the convenience and reliability of letting a third-party professional manage their lighting needs.
(DISCLAIMER: The information in this article does not necessarily reflect the views of The Global Hues. We make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information in this article.)
