Energy-Efficient, Commercial Lighting Upgrades For Asset Managers

Back to LearningLab

This guide is for you, the manager who knows they should undertake energy-efficient upgrades but thinks:

  • I don't have the capital.
  • I don't have the time.
  • I don't have the staff.
  • I don't like the risks.

At Centropi we manufacture investment grade light fitting and supply AI water monitoring systems. You might not need either. That does not matter to us we want to help business decarbonise their facilities in Singapore by providing unbiased useful content.

Help Me Decarbonise!

What This Guide Will Do

  • Confront your biggest concerns
  • Identify zero/low capex funding options
  • Highlight the risks.
  • Highlight the financial benefits, and;
  • Link the upgrades to the goals of the Singaporean Green Plan.

What This Guide Won't Do

It won't help you improve your revenue.

But there is more than one way to increase profits, and it can be done without spending a single dollar.

When it comes to increasing profits, energy-efficient utility upgrades are not normally seen as low-hanging fruit. Mainly because of the four hurdles we set out in the opening section.

Singapore is set to raise its carbon tax fivefold from 2023 to 2024 and at least 10x by 2030.

According to the Prime Minister's office, "On average, with every $5/tCO2e increase in the carbon tax level, electricity tariffs could rise by 1%."

That means your facility's energy bill could increase by 4% starting in January 2024 and at least 10% in the next six years.

Energy-efficient upgrades can no longer be ignored. They are low-hanging fruit and can:

  • Increase your company's profits
  • Increase productivity
  • Improve the safety of your employees, and;
  • Reduce your carbon footprint

The Biggest Concerns Of A Lighting Upgrade

1. We Don't Have The Capital

"Lack of capital" is the number 1 reason businesses defer their energy efficiency projects.

Here are 5 ways your environmentally conscious business can fund your projects without hurting your bottom line.

#1 - Zero-Capex - Energy Services Company (ESCO)

What is an ESCO, and how does the model work?

An Energy Services Company provides energy-efficient technology and services to businesses looking to reduce their energy usage. Consider them a one-stop shop for your energy-efficiency projects.

Their services can include:

  • Design and implementation of energy savings projects,
  • Retrofitting,
  • Energy conservation,
  • Energy infrastructure outsourcing,
  • Power generation,
  • Energy supply,
  • Risk management, and;
  • Innovative financing.

In Singapore, the NEA runs an accreditation scheme for ESCOs to “enhance the professionalism and quality of services offered”. As of August 2023, there are 23 NEA-accredited ESCOs in Singapore.

This Sounds Expensive.

It won’t come cheap, but your company will not pay a single dollar upfront. Most modern ESCOs rely on innovative financing to fund client projects. Therefore they will bear the capital and credit risk, not you.

How is this possible?

Well the ESCO model works by providing guaranteed energy savings. These energy savings translate to cost savings. These cost savings are then shared between the client and the ESCO. Which in turn The ESCO uses to pay back the capital investment of the project over a given period.

On the flip side, if the project does not provide a return on the investment, the ESCO is often responsible for paying the difference. So they better get it right!

When Will I See Returns?

You will see immediate returns following the installation of the upgrades but they may not be as substantial as with other funding methods.

ESCO: Cash Flow Profile

To dig a little deeper let’s break down some of the pros and cons.

Pros

Expertise: By using an ESCO you are effectively onboarding a whole team of professionals who bring specialised knowledge and experience to the table. In theory, they will ensure effective project planning and implementation

Performance Guarantee: As mentioned above ESCO costs are typically paid for via guaranteed savings and built on performance-based contracts, assuring the client of energy savings and ROI.

Off-Balance Sheet Financing: This sounds complicated but all this means is that as your company will not pay anything there is nothing to show on your balance sheet. For the most part, this is only made possible if the ESCO is financing the entire project. This removes the financial burden on a company’s balance sheet.

Cons

Contractual Complexities: If any of the above doesn’t seem that straightforward well it’s not. ESCO agreements can be complicated and involve drawn-out negotiations, potentially leading to delays. Tread carefully.

Shared Savings: Shared doesn’t necessarily mean evenly shared. So you may only get the cherry on top of the energy-savings cake. Why? Well Given the risks the ESCO is taking you can expect that they will want a bit more of that energy-savings cake.

Perspective - How does this work for Lighting?

The ESCO will generally install power meters to gather data on lighting usage before and after the new LED lighting installation. They will use this data to run reports before the installation and every month during the service period. This data gets audited to prove they are saving what was promised. This is good, but as discussed above it costs much more, and the customer ends up paying for it via higher fees (less savings). Therefore lower returns.

#2 - Zero-Capex - Leasing model

What is a leasing model and how does it work?

In the real estate world, this is called Rent to Buy. You want the house but you can’t pay for it up front so you “rent” it from the developer. A portion of that rent goes towards equity in your new home. After a while, you will own the home.

It is no different in an energy-efficiency project lease. The lease provider will undertake the energy-efficient upgrades at their cost. These upgrades should result in energy bill savings.

The monthly “lease” cost will equal these generated savings and will be used to pay back the supplier’s costs.

When Will I See Returns?

You will start to see the financial benefits once these monthly savings have paid off the supplier's costs. And not a moment before.

Leasing Model: Cash Flow Profile

Pros

Keep Your Cash: Like with the ESCO model, there is no upfront cost which allows the client to conserve cash while accessing the energy-efficient technology.

Simple Payments: It does keep things financially simple. The savings are generated and instantly used to pay back the supplier. This makes for easy budgeting.

Tech Upgrades: Like a mobile phone contract, leasing often includes options for upgrading to newer and more efficient equipment at the end of the lease term.

Cons

Overall Cost: Over the lease term, the total cost might be higher compared to an outright purchase. This is because you will never be paying back just the cost of the equipment. You will also be indirectly paying back the interest on the supplier’s loan they used to buy the equipment in the first place.

You Don’t Own Anything: The new equipment might be installed but you don’t own the equipment. This might restrict certain financial benefits or decision-making.

Long-Term Commitment: We have all tried to break out leases in Singapore only to be told we must pay break clauses. It’s no different here. Early termination of leases can lead to penalties, and the commitment might extend beyond the technology's useful life.

Perspective - I can lease lights?

Yes, it is possible. However, depending on the efficiency of the lights, it might take at least two years to pay them back. If the technology is not selected correctly, then the lease might expire beyond the useful life of the lights. Look for investment-grade fittings.

#3 - Zero-Capex - The “as a Service” Model

I aaS was just for computer software (SaaS)?

It’s not, it is now being used by businesses to access higher-quality products that may otherwise be unjustifiable.

The as a service model (LaaS in the lighting world) is an ESCO and leasing hybrid but swings the financial benefits in the client’s favour.

As with ESCo and leasing, there are zero upfront costs. The supplier installs new energy-efficient equipment. This new equipment generates energy savings. Now while the generated savings are still split the aaS fee is less than with an ESCO and as such the client gets a bigger piece of the energy savings cake!

How long will it take to see returns?

Immediately after new equipment is installed you will see positive cash flow. The graph below shows the cash flow profile before, during, and after the service contract.  

LaaS: Cash Flow Profile

Pros

aaS Keeps It Simple: As with ESCOs energy-efficient solutions are accessed without worrying about equipment ownership or maintenance. They are outsourced to a 3rd party.

It Can Grow With You: aaS models often allow easy scalability, enabling clients to adjust their service level as their needs change.

Keep Your Cash: The aaS model conserves cash. Nothing is paid for upfront and the monthly fee is paid via the generated savings.

Cons

The Risk Is With The Supplier: You are relying on the performance of the new equipment. This could lead to disruptions if the provider encounters issues. Being careful who you work with is key.

Long-Term Costs: While upfront costs might be low, the cumulative costs of long-term subscriptions could potentially outweigh purchasing. But if savings are provided and cash is conserved many will dismiss this concern.

Limited Customisation: aaS offerings might not be as customisable as owning equipment outright, potentially limiting tailored solutions.

Perspective - How does this work for Lighting?

LED lighting in Singapore is one of the industries that has started using the aaS model. Lighting as a Service (LaaS) is available from Sunseap. Signify, Centropi, and ST Engineering.

Each company has various lighting technologies and differing grades of light fittings. Some offer commercial-grade lighting and others offer investment-grade lighting.

Using LaaS is a great way to outsource your lighting. It will reduce your overhead in energy bills and maintenance costs.

Low Capital Options

One of the negatives of zero-capex-based projects is they tend to take longer to show financial returns and will generally cost more. After all, you are relying on someone else's capital.

Companies who still want to reduce their upfront costs but would like quicker financial returns may be interested in these next two options.

#4 - Sustainability-linked financing -  Loans & Bonds

The most common form of the product is Sustainably Linked Loan (SLL). These are commonly funded through the issuance of green bonds.

How does it work?

A financial institution will offer the green bonds to its customers to invest in. The money raised from the purchases will be used to fund loans. The loans can only be taken out for carbon-cutting projects or by companies clearly defining and meeting their environmental targets. Thus incentivising positive contributions to our environment.

What is the benefit of “Green” Loans?

To incentivise the use of these loans the interest rate will be lower than traditional loans. We all want to do good but if there was no incentive to use these loans then I doubt the products would exist.

Green financing in Singapore

In 2021 Singapore launched the Singapore Green Plan 2030 a whole-nation movement to advance the national agenda on sustainable development. Capital investment is required to meet the targets set out in the Green Plan and as such there is a need for financing.

The Singaporean government announced in Budget 2022 that the public sector would get the ball rolling by issuing up to S$35 billion of green bonds by 2030. This will include bonds issued by the Government as well as Statutory Boards (NEA, PUB, and HDB).

These bonds can be purchased by institutions and consumers and the proceeds would then be used to fund projects in the following 8 categories.

  1. Renewable Energy
  2. Energy Efficiency
  3. Green Buildings
  4. Clean Transportation
  5. Sustainable Water and Wastewater Management
  6. Pollution Prevention, Control, and Circular Economy
  7. Climate Change Adaptation
  8. Biodiversity Conservation and Sustainable Management of Natural Resources and Land Use

How does this work for my company?

Singaporean banks offer sustainable financing. UOB, DBS, and OCBC all have specific products. For example, UOB has targeted programs depending on your projects.

Your company can approach any Singaporean bank to check the availability of their offerings.

These banks may also have ties to ESCOs and other partners to assist with your energy efficiency projects. But as mentioned above you will be required to show that the loan is being used to fund a specific project, along with project reporting to show energy savings

When Will I See Returns - Cash Flow Profile?

You will see your returns immediately as you will still be paying for your upgrades upfront. There will be loan repayments but they should be significantly less than a service fee.

Sustainable Linked Financing: Cash Flow Profile

Pros

Incentivises Sustainability: Typically the financing terms are linked to the project's environmental performance, encouraging eco-friendly projects.

Lower Rates: Projects aligned with sustainable goals might qualify for lower interest rates or better financing terms.

It will make you look good: Businesses that prioritise sustainability can enhance their reputation and appeal to environmentally conscious consumers.

Cons

Complexity: Determining and verifying the environmental impact can be complex, leading to potential disputes. But this is why having a good partner will ease the process.

Limited Availability: Sustainable linked financing might not be widely available from all financial institutions.

Uncertain Outcomes: There is always a risk that the project’s impact might not align with your projections, which may affect the financial terms. Again, check your partner's credentials to be sure you know what you are getting into.

Perspective - How does this work for Lighting?

Upgrading your LED lighting to commercial-grade or investment-grade light fittings will reduce your energy consumption and carbon footprint.  This type of project will qualify for many of these loans.

LED lighting upgrades are low-hanging fruit for energy bill savings and you can reap the rewards, immediately making funds available for other areas of your business.

#5 - Government Grants

The final option is taking advantage of financing provided by Singaporean Statutory Boards NEA and PUB.

Through an application process, it is possible to obtain “free” money from the government to undertake energy-efficiency upgrades.  

It is in the best interest of the government to encourage these upgrades as it helps them to meet the targets set out in The Green Plan.

Singapore National Environment Agency (NEA) Grants

The NEA currently has 4 available funds. Great news for those looking to lower capital requirements.

3R Fund - Read More

Call for Ideas Fund - Read More

Energy Efficiency Fund - Read More

Research Innovation and Enterprise (RIE) Funding Initiatives - Read More

Energy Efficiency Fund (E2F)

As you might have guessed, the E2F fund specifically targets energy efficiency projects.

What are the criteria?

Your company:

  • generates less than $500M in revenue
  • is a Singapore-registered owner or operator of an industrial facility
  • has not commenced the project (i.e. the company has not signed contract(s) with suppliers).

What can you get?

  • Up to 50% for carrying out detailed energy audits
  • Up to 50% to conduct design workshops to improve efficiency for new facilities or major expansions
  • Up to 70% to invest in energy-efficient equipment or technologies
  • Up to 50% to install energy management information systems to monitor energy consumption.

The application is typically completed in 1 to 2 months, and funds are dispersed when your supplier invoices you.

Singapore Public Utility Board (PUB) Grants

As an aside the PUB also has grants available. Albeit not specifically energy efficiency, lowering your water consumption will inherently lower your carbon footprint.

PUB Water Efficiency Fund (WEF) - Read More

The Industrial Water Solutions Project Unit (IWSPU) - Read More

When Will I See Returns - Cash Flow Profile?

You will see your returns immediately as you will still be paying for your upgrades upfront. There is no monthly service fee to account for.

Government Grants: Cash Flow profile

Pros

Money helps: Grants provide you with cash, which reduces your financial burden.

Stimulate Innovation: As mentioned above, people will put off projects because of a lack of capital. Therefore government grants often encourage the development of new technologies and approaches in the energy sector.

It’s good to talk about: Securing a government grant can enhance a project's credibility and positive public perception. It can be used as a great marketing piece for your company.  

Cons

Competitive:  Free money is attractive, so grant applications can be highly competitive, with no guarantee of approval.

You will have to fill in forms: The application process can be time-consuming and you may need to submit lots of documentation.

You have to have your ducks in a row: Meeting grant requirements and reporting standards can be demanding, adding administrative overhead.

Perspective - How does this work for Lighting?

Upgrading your lighting to investment-grade light fittings will reduce your energy usage. Therefore LED lighting upgrades are pre-approved for 70% coverage, resulting in extraordinary ROI.  

I Don't Want To Take The Risk

Who does? Regardless of how you purchase your lighting, you have to assess the risks.

There are 4 main risks associated with an LED light fitting upgrade, they are:

  1. Technology risk - how do I select appropriate solutions?
  2. Capex and investment risk - will the project generate returns?
  3. Performance risk - will the technology perform as expected?
  4. Maintenance risk - what are the lifecycle costs?

Let's look into each of these risks and understand how we can reduce or eliminate them.

#1 - How do I select the right solutions?

The biggest risk to your investment is the technology you chose.  If you choose the correct technology risks 2-4 deal with themselves.

How do I avoid selecting the wrong solutions?

The only way to eradicate all risks is to invest in the technology. If your decision is driven by either of the following 2 factors then an investment in an LED lighting upgrade is probably not right for you and your business.

  1. Cost - We understand that even with grants and the LaaS model, companies still want to spend as little as possible. It is OK to base your purchase decision on cost alone as long as you are willing to accept the associated risks. Cheap light fittings:
  2. will not provide you with high ROI or quick payback,
  3. will use more energy, and;
  4. will need to be changed more frequently.
  5. Brand - Brands exist for a reason. Consumers are drawn to large brands because they associate them with better quality items and/or better service.

We can no longer assume that because an LED light fitting was supplied by OSRAM, Signify (Phillips) or any other large supplier, the fitting is the best one for you and your business's needs.

Select the right solutions by knowing the key specifications

As with any investment, a list of requirements is needed. This allows us to narrow the list of choices and assess the outcomes based on what was promised by the supplier. For lighting, we can look at the key specifications.

Below are some ideas of what might be on your list:

  • Must have a 5-year guarantee  
  • Minimum efficiency greater than 150 lumens/watt
  • Minimum L70 of 50,000 hours
  • Must achieve a minimum lux level
  • A replacement rate of 5% or better during the warranty

With a list like this, you now have a quantitive means to appraise a supplier, and their fittings and reduce/eradicate risk.

If it sounds too good to be true, it probably is.

#2 - Will the project generate returns?

We will cover this in more detail in the financial benefits section. But to put it simply, yes the project will generate returns. A successful upgrade is one that generates a return for the customer AND the supplier.

#3 - Will the technology perform as expected?

LED Lighting Is Over Hyped

It is true, that while LED lights can use up to 80% less energy and last longer when compared to traditional incandescent or compact fluorescent fittings, they still don't live up to the hype. This is a real risk to your investment.

Why do they fail?

The performance of any piece of technology is determined by its parts. LED lighting is no different.

The three main components of LED light fittings are:

  1. The LED Chip or Surface-Mounted Device (SMD) - This is the component that emits the light
  2. The Driver - This is the component that protects the LED chip from electricity fluctuations
  3. The Heat Sink - This is the component that keeps the whole LED fitting cool

As you would expect, cheaper LED fittings use cheaper parts.

So how do you avoid the risk of poor performance? By using fittings designed for investment-level upgrades.

What makes an investment-grade light fitting?

Component selection

Investment-grade light fittings use the highest quality LED chips, drivers, and heat sinks. This all makes the fittings expensive, but it makes them reliable and efficient. \

Minimal maintenance

Regular \maintenance costs the supplier money. So it is better for them to provide investment-grade fittings.

  • On average, historical replacement rates for investment-grade fittings during contract periods are around 1 unit per 1,000 units installed (0.1%). Commercial LED lights have an industry-standard replacement rate of 50% over their rated lifetimes.  
  • Using investment-grade fittings minimises the supplier's risk of replacement costs which allows them to pass on a lower service cost to the customer, which helps maximise their returns.

Maximum energy savings

  • On average investment-grade LED lights are 30% more energy-efficient than commercial-grade LED lights.
  • This maximises the customer's return and strengthens our competitive advantage

Benchmarking

A comparison of two popular categories, high bays and tubes, shows that Investment-grade LED fittings are 30% more energy-efficient than top-end commercial LEDs and offer longer maintenance-free lifetimes.

Comparison of Investment Grade Light Fittings

Guarantees to transfer risk

Some LaaS providers will guarantee that if any batch of lights exceeds a certain replacement rate during the contract period, they will replace the whole batch at no cost.  The suppliers offer this guarantee primarily to completely transfer the risk of the project from the customer to themselves and overcome every possible barrier for the customer.

#4 - What are the lifecycle costs

Selling a light fitting that needs regular replacement defeats the purpose of an energy-efficient lighting upgrade. If the fittings are supplied via a LaaS contract regular replacement will reduce the supplier's earnings. If the fittings are purchased upfront then the customer will no doubt be disappointed with purchasing an inferior product.

Replacement

Most LaaS suppliers will commit to replacing defective lights one-for-one within 24 hours during the service period.  Defective lights are any that experience:

  • Visible flicker
  • Visible colour shift
  • A drop of 30% or more from the original luminance

Warranty

Warranties will vary amongst suppliers so check before you buy. Some claim to provide a warranty of up to 5 years, but include daily restrictions on usage hours and number of on/off cycles.  If you operate your lights 24 hours a day, your warranty may only be valid for 2-3 years.

Look for vendors who include labour to replace lights in their warranty, though most will only deliver the replacement lights to your site.

Who really holds the risk?

If you are

Investing in an LED Lighting upgrade is a two-way street and it only works if it generates a stable return for both the supplier AND the customer.

The LaaS model and sale of investment-grade light fittings are not set up to make quick bucks. It‘s a solid business that only works for suppliers investing in high-quality products.

Suppliers who take private equity investments cannot afford to maximise their customers' ROI. They must maximise their returns first and foremost because their investors demand outsized returns. So always question your supplier's source of funds.

This Is An Investment

“We don‘t have a payback or return on investment goal”

”What does return on investment mean for lighting?”

These are two of the most common things we hear when talking with new clients.  Especially given we are talking about LED lighting!

Why? Because lighting has been commoditised and businesses change light fittings without real knowledge of the possibilities open to them.

This is an investment and you can make money from it.

Return On Investment (ROI)

The financially savvy will look at how they can make any purchase work for them. They may even have a specific ROI in mind, which will narrow the list of potential suppliers and products.

Return On Investment (ROI) is used flippantly and, in some cases, without a real understanding of what it means.

What does ROI mean?

Return on Investment measures how much money you get back compared to how much you put in. Imagine you invested $100 in something like a business or a project. After some time, your investment grows, and now it's worth $150. Your ROI would be 50% because you gained $50 on top of your initial $100. It helps you see if your investment was a good decision or not. The higher the ROI, the better the investment is doing.

How does it work for investment-grade LED Lighting?

Option 1 - Fittings purchased upfront

Your business may have money allocated for green investments and grants from the NEA. In this instance, an upfront purchase is sensible. So how do you calculate ROI? The predicted monthly energy bill savings will be divided by the upfront cost. You can reach out to us to work out your potential savings.

ROI = Monthly Energy Savings($)/divided by upfront cost($)

Depending on your existing light fittings, the return on investment could easily be double digits.

Option 2 - Fittings purchased via Light as a Service (LaaS)

With LaaS, your business will not pay anything upfront. So in this instance, we will use the monthly LaaS fee instead of the upfront purchase cost.

ROI = Monthly Energy Savings($)/monthly LaaS fee($)

We have seen situations where investment-grade LED lighting delivered via a LaaS Model can provide more than 100% ROI from the first month.

Financial payback period

Like with ROI, some businesses might want to set a specific payback period goal for an investment. Again this instantly changes the purchase from ad hoc to an investment. So it is also useful to understand payback, which is the other specific financial goal that could be applied to a LED lighting Investment.

What is the payback period?

The financial payback period is a way to figure out how long it takes to get back the money you invested in something. Let's say you invested $500 in a project or a gadget. Each month, it makes you $50. To calculate the payback period, divide the initial $500 by the monthly profit ($50). It means it will take you ten months to return your $500 investment. After that, all the money you make is pure profit. The shorter the payback period, the faster you get your investment back.

How does it work for investment-grade LED Lighting?

Option 1 - Fittings purchased upfront

Like any upfront purchase, your new lighting will cost you a certain amount. If investment-grade LED lighting is selected, you will get immediate monthly savings. The size of the savings will determine your payback period.

Payback Period = Upfront cost/monthly energy savings

If you are running non-LED lighting in your space, your payback period will be shorter than if you are using LED lighting. But there are still great gains even if you run inefficient LED lighting.

Option 2 - Fittings purchased via Light as a Service (LaaS)

Payback Period = Monthly LaaS fee($)/energy savings($)

There is no upfront cost with LaaS. So the monthly fee is used to determine payback.

The monthly savings achieved after installing investment—grade lighting will cover the monthly LaaS fee and provide energy bill savings. So your payback period is 0 months. When you do the above calculation, you should get a figure of less than 1.

The payback period for LaaS using investment-grade LED lighting is instant.

For businesses who cannot afford to purchase upfront but are looking to get instantly reduced energy bills and free up cash,, combining this is a great goal.

How To Play Your Part

In 2021 Manufacturing, Wholesale trade, transportation, and storage made up over 45% of Singaporean GDP.

Given its influence on GDP, a broad-based reduction in the running costs, carbon footprint and increase in productivity could have a profound effect on the Singaporean environment and economics.

Now we are not saying better lighting is going to change the world. But in all of these industries lighting is used as a tool to ensure safe, conducive, and productive workspaces for Singaporeans and residents.

Therefore there are benefits to learning more about the potential of energy-efficient lighting.

The Green Plan Singapore

Lighting makes up around 18% of total energy use in commercial buildings in Singapore and the government has aggressive environmental targets set out in the Green Plan.

Under the Energy Reset - Infrastructure and Buildings section there are two main targets to achieve by 2030:

  • ​​80% of new buildings (by Gross Floor Area) to be Super Low Energy buildings from 2030
  • Best-in-class green buildings to see an 80% improvement in energy efficiency (over 2005 levels) by 2030 Long-term target:

Businesses can play their part in hitting these targets by leveraging government grants - such as those discussed previously - and carefully selecting investments to improve facility energy efficiency.

Wrapping Up

Investment in an energy-efficient lighting upgrade shows your business's commitment to the Singapore Green Plan 2030. It will also provide reductions in running costs, carbon, and improvements in productivity.

However, is it the right choice for your business?

Is A Lighting Upgrade The Right Choice For Your Assets?

A LED lighting upgrade is NOT SUITABLE for you if:

  • Your company does not prioritise returns in favour of other metrics like cost or brand.
  • Your facilities have been upgraded to LED lights in the last 3 years.  After around year 5, the replacement rate of commercial LED lighting start to be noticeable.  After this point, a replacement will offer an attractive payback period/ROI.
  • Your company is not incentivised to generate returns with infrastructure purchases.
  • You do not anticipate owning or renting the building or space for more than 3 years.
  • Your company's asset is in retail, sports, outdoor-only, government, or residential.

An LED lighting upgrade IS SUITABLE for you if:

  • Your company's facility operates at least 500 non-LED high bay, tube lights, or downlights for more than 12 hours daily.
  • Your company's asset is industrial, manufacturing, healthcare, or offices.  
  • Your company prioritises return on investment, quick paybacks, energy savings, maintenance savings, and/or decarbonisation
  • Has deferred an LED Lighting upgrade due to capex, workload, and/or the risk
  • You have a dedicated sustainability team with specific environmental goals.  
  • Your company wants to act now!

Let's Do It! What Will We Gain and Save?

Capacity. Are your building occupants their most productive?

Bad lighting should not negatively affect productivity, safety, and employee well-being.

According to a study by the American Society of Interior Design (ASID), 68% of employees complain about the lighting situation in their offices, specifically mentioning issues like glare, flickering, and inadequate lighting levels.

Well-lit workspaces can reduce eye strain and headaches and increase employee retention by creating an overall comfortable and healthy work environment.

COSTS. How much money can you save?

If you’re:

  • using unnecessarily high-wattage bulbs;
  • leaving lights on when not needed;
  • failing to maintain or upgrade your lighting systems;
  • deferring upgrades due to upfront costs

then your business is wasting money.

Example

In a logistics facility project, 613 metal halide high bay lights (400W) were replaced with investment-grade LED high bays (100W). It resulted in almost S$24,000 in annual energy savings and significant carbon reduction.

CARBON. Does your business have environmental targets?

Lighting is low-hanging fruit for carbon reduction. We typically expect 30% savings on lighting energy bills.

Example

In the example above 295 tonnes of carbon were averted. That is the equivalent of 150 cars driving 10,000km a year!

150 cars, driving 10,000km/year create almost 300 tonnes of C02.

150 cars, driving 10,000km/year create almost 300 tonnes of C02.

With awareness of climate change at its peak and the urgent need to reduce greenhouse gas emissions, you and your business must proactively promote and implement a decarbonisation plan.

Have a conversation with a Lighting as a Service specialist in your area to get the ball rolling toward achieving your sustainability goals.

More from the LearningLab

The Real Cost Of Deferred Energy Efficient Upgrades. Stop applying Band-Aids.

Do you think you are saving costs by deferring maintenance?

Read Story

What is Carbon Accounting? Scope 1, 2 & 3 Emissions with examples.

How do we add up our carbon emissions? Via Carbon accounting.

Read Story
1,000s
Retail stores, shopping malls, restaurants, and supermarket
100s
Industrial and manufacturing facilities
100s
Hospitals and clinics

Upgraded with

Take Your Next Step to Net-Zero


Get in touch and we will get straight back to you!

We do not spam. Review our Privacy Policies below.

By clicking submit below, you consent to allow Centropi to store and process the personal information submitted above to provide you the content requested.

Centropi is committed to protecting and respecting your privacy, and we’ll only use your personal information to administer your account and to provide the products and services you requested from us. From time to time, we would like to contact you about our products and services, as well as other content that may be of interest to you. If you consent to us contacting you for this purpose, please tick below to say how you would like us to contact you:

Thank you! Your submission has been received and you'll hear from us within 24 hours.
Not fast enough? Call to speak with us now.

Singapore +65 6977 9806
España +34 620 03 81 73
Oops! Something went wrong while submitting the form.