What does the service really cost?
Exactly as promised.  The customer has no capital expenditure and is never charged for anything other than the fixed monthly service fee.  We cover 100% of the cost to analyse, customise, test, install, and service the lighting systems.  Our service charge is only a portion of the monthly energy  savings of the upgrade during a 5-year service agreement.

How are energy savings calculated?
At your invitation, and at no charge, we conduct a thorough lighting survey of your facility that includes your current lighting technology and wattage, lighting schedules, and your facility's energy tariff. This is sufficient for a preliminary proposal. If this pre-proposal is approved in-principal, we install a lighting mockup for comparison studies that typically last a week. Because your facility operates lighting on a fixed schedule, we are able to accurately model your savings and offer a five-year service with a fixed monthly fee that is cash flow positive.
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What if the facilities are renovated during the contract period?
‍If during the contract a renovation drastically increases the usage pattern and new fixtures are installed, we can fit out this new area and incorporate it into an amended or separate service agreement.  If no new fixtures are installed and only usage increases, there is no change in our fee. If usage is drastically reduced though removal of lighting fixtures, there is an option to buy out the portion of the contract effected at 80% of the remaining value.  In most renovations lamps are relocated to the new area and usage is not significantly effected.


What if the property is divested during the service agreement period?
In the case that a property is divested during the agreement period, the agreement is transferable, and we give the option to buy out at 80% of the remaining value.

Why are your products superior to the competition’s?
As an exclusively in-house investment-grade brand, our NIPPON LED engineers and designers are continuously evolving the product line with the latest technologies to keep ahead of a very competitive Japanese commercial LED market.  We can do this without being limited by market prices because we don't sell our lights. Our revenue is driven by how much we save our customers and this drives us to design for industry-leading efficiency and quality.

Further, our factories are under a strict quality assurance regime that includes running every lamp and fixture under special conditions for 24 hours before shipping.  With more than 5.5 million lights under contract across Japan, keeping our defect rate to practically zero is critical to our business model.  

Is the CENTROPI service feasible for new projects?
For projects in design or construction phase, we can propose a LaaS based on the current lightings specifications. Even commercial-grade LEDs can be upgraded to NIPPON LEDs with 30% energy savings. The savings are modelled using the product parameters and verified by the client's consultants.  The monthly fee is based on these modelled savings.

Will LaaS work for my facility that already has LED lighting?
If you have upgraded, or partially upgraded, your facilities with commercial-grade LED lights, you may be disappointed with the lack of savings or high percentage of defects. We may be able to save you an additional 30% in energy costs with practically no defects over a five-year period. However, for LaaS to make financial sense, your facility would have to operate lighting at 24 hours a day, 365 days a year, and your energy tariff must be relatively high. Having said that, we would be glad to have a closer look at your facility. Perhaps including occupancy sensors can reduce your lighting usage enough to pay for the service and generate an attractive return.

What happens after the service agreement?
At the end of your service, the entire lighting package is yours to keep, generating several more years of fee-free savings.