LED Lighting and C-PACE Help Lower Operating Expenses

Sometimes it makes sense to upsize a necessary capital project to offset the costs with overall reduction in operating expenses.

When considering HVAC, elevators, or other capital intensive upgrades, energy cost savings from LED lighting can offset the cost of replacing aging equipment. Upsizing a capital project to include lighting keeping lower energy costs in mind can help offset costs. It has been shown that switching to LED lighting from older technologies of lighting such as fluorescent can lead to major energy savings over time as LED implementation translates directly into lower utility bills. This reduces operational expenses while also contributing to global sustainability initiatives.

C-PACE’s 100% funding avoids all CAPEX for these projects and allows the inclusion of lighting. The long 25-30 year term with fixed interest rate smooths out cash flows to turn a capital expenditure project into an operating expense reduction in the first year.

C-PACE provides all funds to upgrade aging equipment with no Maintenance CAPEX.

LED lighting has an impressive operational lifespan which reduces the frequency with which they need to be replaced, again contributing to lower life-cycle costs. The US Department of Energy states that “LED’s use up to 90% less energy and last up to 25 times longer than traditional incandescent bulbs.” Although LED lights are initially more expensive, they still save money as they last much longer and have very low energy use therefore increasing net operating income. Even with the higher upfront expenditure, property owners may see net positive savings related to lighting costs starting in the first year.

Switching to LED lighting offers substantial environmental advantages, due to its outstanding energy efficiency. LEDs consume much less energy than traditional fluorescent systems, yet they provide comparable, or even better brightness levels. This results in reduced greenhouse gas emissions associated with electricity generation. Adopting LED lighting allows businesses to markedly diminish their carbon footprint and actively support worldwide endeavors aimed at mitigating climate change. LED lights are also useful for indoor and outdoor lighting, as they are durable even in cold environments.

There is a significant difference between the manufacturing of LED lighting compared to fluorescent technology. LED lighting is manufactured with less hazardous materials, such as mercury, making them much safer to handle and dispose of at the end of their lifespan. Businesses upgrading to LED lighting can also enhance safety and reduce hazardous waste generation.

This proactive approach not only aligns with regulatory standards but also demonstrates a commitment to environmental stewardship.