Innovations in finance

Sylvania looks at new ways of funding lighting upgrades that don’t tie up working capital

On a day-to-day basis we take lighting for granted. Rarely, do we stop, look up and think about the role it plays in enabling a safe and productive working environment. But this is changing. Rising energy costs are now a certainty and this is getting many businesses hot under the collar. The trend is only going one way, so looking for innovative ways to reduce energy costs and improve efficiency is high on everyone’s agenda. Typically, lighting represents around 30% of overall energy consumption so identifying ways to reduce this will deliver a significant saving.

In business, certainty is something we all desire. Wouldn’t it be great if we knew exactly what the demand for our products and services would be and that the costs involved were pre-determined? This is where innovative approaches to financing new lighting infrastructure come into their own. There is widespread understanding that LEDs combined with intelligent controls, lighting areas on an in-use basis only, are a great way to improve energy efficiency and reduce costs. Retrofits are a good solution, but for a larger project the challenge can be how to fund a lighting upgrade without tying up working capital and impacting the balance sheet.

The good news is that forward-thinking lighting suppliers are both investing in new lighting products and providing new funding models that reflect today’s business climate. These new approaches allow businesses to invest in more efficient, cost-saving lighting infrastructure without any capex commitments. Instead, the upgrade is funded entirely from the energy savings generated which removes the need to find upfront capital and leaves the balance sheet well-alone. These are flexible solutions that can be tailored to suit businesses of all kinds.

For the first time, businesses can have predictability in their lighting costs. There is a variety of adaptable finance options so businesses of all sizes can upgrade their lighting and benefit from improved energy efficiency - whether it’s retrofit, hire purchase options, savings sharing or Light-as-a-Service.

At a time when businesses are under pressure to reduce their energy consumption, upgrading to more energy efficient lighting can be a good way to unlock energy savings. So, look up and if you see halogen and incandescent lighting fixtures hanging above you, then it’s time to explore more energy efficient options.

Read our eBook ‘What’s Hanging over Your Head’ to get to grips with energy efficient lighting.