No-Cash-Outlay LED Upgrade Program Cuts Energy Cost Up to 80%

 

Commercial buildings in California served by Southern California Edison, Pacific Gas & Electric or San Diego Gas & Electric can now receive LED lights to replace inefficient lighting with no cash outlay, through an initiative from the Alliance for Energy Efficiency.

The LEDs used in this program have warrantees of up to 10 years and rated lifespans of up to 100,000 hours, which is up to 10 times longer than traditional lighting. This long life of LEDs virtually eliminates lighting maintenance cost and demands on staff for many years.

The program eliminates out-of-pocket costs for buildings in two ways. First, utility rebates and LED manufacturer incentives are applied against the project cost. The utility pays LED suppliers for the remaining project cost, and retains the monthly energy savings until this payment is recovered.

After the utility has recovered the amount it paid out, the full energy savings reduces the building's utility bill. The result is building operators achieve a major reduction in operating cost without any cash outlay.

The first step is a no-cost facility audit by Alliance for Energy Efficiency, which is implementing the initiative throughout California. The Alliance develops an Opportunity Report and verifies that buildings meet utility requirements to participate in the program.