LED Savings Solutions has recently established some ground-breaking international LED lighting production and financing relationships that include exclusive US distribution and reduce up-front costs to $0 for property owners. The company is a national energy reduction company that saves tens of thousands of dollars each month for its clients, with cash flow positive results in the very first month. Through its partnerships, LED Savings Solutions has a $300 Million line of credit to jump start the LED lighting ‘revolution’.
On September 15th 2009, the Philadelphia based company announced the launch of its Channel Partner Program across all 50 states. Given the recent demand for energy savings through high efficiency lighting, LED Savings Solutions has elected to expand its business beyond the region and include professional firms to support their efforts in lighting energy audits, installations, and marketing outreach. Given the negative news regarding unemployment in America, this is a ‘bright’ moment in the Green Economy.
According to the mid-September announcement, there is no cost for companies to become a Channel Partner, but they must meet quality and ethical standards as well as fall into one of the ‘eligibility’ services categories.
Companies that qualify for the Channel Partner Program include:
- Commercial Lighting and/or Lighting Control Installer
- Commercial Interior Design and/or Architecture
- Commercial Real Estate Developer
- Commercial Efficiency Consultant
- Commercial Real Estate Broker
- Commercial Energy Auditor
“When you hear the innovation that's taking place -- everything from LED lighting that can save a huge amount on energy costs … I know light bulbs may not seem sexy, but this simple action holds enormous promise because 7 percent of all the energy consumed in America is used to light our homes and our businesses.” President Barack Obama, July 2009
According to the Department of Energy (DOE) annual US energy consumption is over $400 Billion, and with lighting accounting for 7% that adds up to a $28 billion lighting industry. Light Emitting Diode (LED) bulbs are now one of the most cost-effective ways to save energy and money in this multi-billion dollar industry, because they use 80% less power than traditional bulbs like the fluorescent tubes. LEDs are also dimmable, with outstanding color temperature choices and longevity that extends over decades. Therefore, property owners facility managers, and tenants maintain excellent light quality and save on the cost of ongoing operation, replacement, and labor. Plus the LED bulbs last for between 50,000 and 100,000 hours, which adds up to 20 to 40 years at typical office use of about 2,500 hours per year. On average, lighting typically accounts for 30% of Commercial energy consumption, with Retail properties using 37% and Hospitals using 50% or more of their electricity on lighting because the lights are on almost 24/7. For every $100,000 spent on electricity that translates into between $30,000 and $50,000 in annual savings.
“For major client accounts, we literally take all of the risk replacing the bulbs, and we only get paid on the savings results. This means that we have a massive number of clients interested in the program. The Channel Partner opportunity is a way to expand our network and allow companies to share in the revenues even if they simply refer leads rather than go through the auditing and installation process.” – President, LED Saving Solutions and GREENandSAVE, LLC
‘Zero Down’ Payment Example: A 75,000 sq. ft. property may spend $25,000 per month on electricity or $300,000 per year ($4 / sq. ft. average) of which 25% is lighting or $75,000 of the total electricity cost ($1 / Sq. ft. average). LED bulbs can save up to 80% of this lighting electricity cost which brings the cost of lighting for the year down to $15,000, creating a savings of $60,000 annually or $5,000 per month. The cost of the LED bulbs for this size project is approximately $120,000, making the payback approximately two years. After that the savings would run for at least another twenty years for a total of $1,600,000 in present value energy savings. LED Savings Solutions clients may elect to purchase the bulbs outright, finance them over three years, or take part in the ground-breaking savings share program. With the savings share, each client pays 65% of the monthly savings each month. In this example, $5,000 in savings generates a payment of $3,250 from the client and $1,750 per month in positive cash flow. LED Saving Solutions and its financing relationships incur the risk over the multi-year life of the relationship, but Channel Partners receive their revenue share and commissions on the total market rate of the bulbs within either the first couple months or inside of the first year.
To inquire or apply for the Channel Partner program: Contact Reed Wilmerding, Director of Business Development and Channel Partners - Reed@GREENandsAVE.com.
