The way you light your business makes a big impact - for customers, for employees and for your bottom line. More and more companies are making the choice to upgrade to LED lights because of the numerous business benefits. In addition to immediate cost savings, LED lights are more energy efficient, better for the environment and, thanks to new programs, upgrading to LED lights doesn’t have to cost a dime.
Planning your upgrade to LED lights? Read this Guide to Commercial LED Lighting.
Upgrade to LED and Save
Choosing energy efficient lighting lets businesses control operating expenses and save money. LEDs are actually one of the most affordable types of commercial lights. In addition to the longest available lamp life (up to 50,000 hours), these lights use 25 to 80% less energy than traditional alternatives.
Upgrading to LED lighting doesn’t have to be an expensive change. Thanks to their energy efficiency ratings, using LED lights can help your business qualify for many grants and assistance programs. Working with an LED lighting partner can make an LED upgrade even more affordable through Lighting-as-a-Service support models.
LED Upgrade Savings Tip 1 - Energy Efficiency Grants
Businesses can take advantage of energy efficiency grants to offset the cost of upgrading to LED lighting. Grants are non-repayable cash or products that are provided if your business meets the requirements. These energy efficiency grants for small businesses are often granted by government bodies but they can also be provided by:
- Educational institutions
- Groups or individuals
Don’t forget the value of shopping small! State grant programs often offer less competition than federal energy grants. It can be easier to qualify for these state-funded energy efficiency grants, but the overall dollar amount may be lower as well. Some grants may also require a company match equal to the donor’s contribution.
Upgrading to LED lights means instant energy savings. Learn how with this Guide to Commercial LED Lighting.
LED Upgrade Savings Tip 2 - Incentive Programs
In addition to energy grants, small businesses can also leverage incentive programs to further reduce the cost of upgrading to LED lights. These programs typically won’t cover the entire cost of upgrading to LED lights, but they will help reduce your energy bills even further each month.
- Rebates: Federal, local and individual rebate programs provide small businesses with money back after making energy efficient upgrades.
- Tax Credits: When you upgrade to LED lights, your business can qualify for energy efficiency tax incentives. Deductions are available at a per square foot rate for buildings that meet certain energy efficiency requirements.
Energy Efficiency Programs: Utility companies often offer incentives to reduce consumption during peak hours. When paired with lower energy consumption due to LED lights, businesses can reduce their monthly bills even further. Other programs can also provide rewards for making energy efficient upgrades.
Where to find grants and incentives
You can maximize your total savings by combining grants and incentives from multiple sources.
- Search state and federal government grants here.
- Review this list of state and local funding options from the U.S. Small Business Administration.
- Find energy incentives by state here.
- See our list of 4 energy efficiency grants for small businesses.
LED Upgrade Savings Tip 3 - Lighting-as-a-Service
Finding upgrade incentives, rebate programs and grants can be a full time job, and it’s easy to miss some savings. Small businesses are turning to Lighting-as-a-Service (LaaS) partners to upgrade to LED lights for zero upfront costs and additional savings every single month. The money you normally spend on lighting and energy can be reinvested in your business in growth opportunities that increase profitability.
By installing high-efficiency lighting systems with no initial investment, FES has saved our customers over $200 million. FES covers all the upfront costs to upgrade including design, manufacturing and installations. The energy savings are immediate for the business owner, and a portion of these savings pays for the lighting upgrade over time.
When you’re ready to update to LED lights, you can make the switch without spending a dime. By leveraging energy grants for small businesses and federal and local incentive programs, it’s possible to reduce the total cost for an upgrade. Working with a LaaS partner like FES ensures you’ll get a professionally designed LED lighting system with zero upfront costs and ongoing maintenance and support. The lifetime value of your system and the total cost savings are an important way to protect your bottom line.