Increase Your Bottom
Line
the Easy Way
Upgrade an Under-Performing Asset
Do you have an under-performing asset in your
building? Try looking at your ceiling. The lighting
systems you currently have are probably outdated and
using too much energy. If you haven’t upgraded to an
energy-efficient lighting system, you’re losing
money!
In the past decade, a virtual revolution in lighting
technology and environmentally improved products has
given thousands of organizations a new way to
enhance their bottom line. The revolution has
resulted in:
-
Reduced operating costs through
energy-savings
- Productivity gains through better lighting
quality
These organizations
discovered that simply by upgrading their
lighting systems they could significantly
cut utility bills while providing a return
on their investments of 50 to 75 percent or
more. If
you’re not reaping similar gains, your
current lighting system is an
under-performing asset.
It's simple; to stay
competitive and keep more of your hard
earned profits, replace your inefficient
lighting.
Know
Your Cost of Light
Maintaining your lighting
system can be very costly. The cost of light is
broken down into three components:
  
Many organizations spend
most of their time trying to impact the 4%
portion of their lighting dollar. They have
enormous purchasing departments whose sole
purpose is to negotiate a better price of
the product. Individuals may even get
bonuses for saving their company money on
supplies. In fact, the purchase of lamps and
ballasts represents only a fraction of the
overall cost of light. Energy cost is by far
the biggest expense. That’s why it pays to
invest in the most energy-efficient lighting
equipment.
Maintenance Savings
In the long term,
fluorescent lamps and ballasts on average
will outlast HID's by at least 20% and are
considerably cheaper to replace.
One
large drawback of HID systems is that they
must be turned off to replace the bulb
resulting in maintenance having to work
after hours or alternatively shut down a
whole circuit of lighting to simply replace
a bulb. Fluorescent bulbs are often replaced
with the power still on and there is no
waiting for the fixtures to restart due to
the instant re-strike.
Tax Savings
The Energy Policy Act of 2005 signed in
August of 2005 created tax incentives
designed to encourage business owners to
improve energy efficiency of new and
existing buildings. An accelerated tax
deduction is now available for lighting
systems that meet energy efficiency
standards by calculating the power density
(watts/sq. ft.) of a facility.
Under the
act, the facility owner or renter can write
off up to $0.60 per square foot of facility
using energy-efficient lighting in the same
year as the lighting was installed. This is
a dramatic improvement over prior treatment
which required lighting system costs to be
depreciated over the life of the building
which was typically 37.5 years.
The Act is
effective for new and retrofit installations
after January 1, 2006 and before December
31, 2013. For more information visit
www.efficientbuildings.org
Pay Out
Of Savings Program
The
ROI, payback period and reoccurring savings are very attractive, but
what can companies do if they don't have the capital budgeted to take advantage
of these incredible benefits?
Many lighting
companies are offering a Pay-Out-Of-Savings
program allowing businesses' to remove their costly
HID lighting and replace it with
energy-efficient lighting at little or no up front/out
of pocket cost. Because of the substantial
on-going savings, these lighting companies
have the ability to get paid out of the
identified savings while also creating an
increased positive cash flow for the
purchaser.
Stop
over-paying the utility company and start
increasing your cash flow. |
