Lighting as a Service (LaaS)

What would the benefits be of buying lighting, not lights? Servitisation has been championed by Rolls Royce and Ellen MacArthur Foundation alike; EGG explains how it works and why it’s got everyone so excited.

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Why LaaS is the future of facilities lighting, and why you should care.

EGG lighting have 3 key aims: save money, reduce carbon, futureproof your tech. We work hard to make these goals a reality for every one of our customers.

Lighting as a Service (LaaS) is often cited as one of the top solutions in the circular economy. Its opposite, the traditional take – make – dispose model, isn’t only bad for the environment, it’s bad for our customer’s bottom line. We use remanufacture to save embodied carbon and help organisations reach their net zero targets. LaaS is then the service that supports the lasting environmental and financial benefits of remanufacture. But there’s a lot more to it than that, so let’s get into it.

How is LaaS Defined?

Unfortunately, LaaS is not a regulated term, so you may see different definitions out there. EGG Lighting subscribes to the definition provided by the Ellen MacArthur Foundation. It defines LaaS as “a concept where users pay for the light that hits their desk, rather than the physical luminaire installed in the ceiling”.

What Makes LaaS Different?

The defining feature of a service is provision over ownership. To use some classic examples, in netflix’s model you do not own a film; you get the ability to access thousands of films on demand. Or xerox does not sell you a printer; it provides you with the ability to copy and print documents.

Lighting as a Service follows this trend. EGG Lighting retains the ownership of your luminaires, so that you aren’t paying for the lights installed in your ceiling, you pay for the light that hits your desk. 

That means that EGG Lighting bears the total cost of ownership. This shifts our incentive to focus on quality; longevity, reliability and reusability. When consumers subscribe through this model, performance trumps volume and durability tops disposability. LaaS means companies can have an opportunity to build new relationships with consumers.

Where does LaaS fit in with EGG's other services?

Every organisation has different needs. We help public, private, large and small organisations quickly and easily access reliable energy efficiency savings. The 3 options below let us cater to how you like to do business.

A straightforward purchase of luminaires that have been designed to last. Our lights are 'Designed for Remanufacture' (DfRem). We can provide the right lights, at the right price, and provide a seamless service from from site survey to install. EGG Lighting has hundreds of happy customers and can typically provide an ROI period under 2 years (dependant on usage hours).

At EGG we want to keep your lights running efficiently forever. You're lights will already be designed to allow upgrade, please ask us for information about our rolling warranty and maintenance solutions. 

Are you essentially happy with your lighting, but you're only considering replacing it because you know it's energy efficiency is lagging behind current technology? Remanufacturing is the best option for you!

EGG Lighting take your existing luminaires and give them a full and thorough service; repair any parts not up to scratch, replace components with the latest LED & sensor technology, we can even convert your old lights into SMART lighting which can host IoT devices. All this, and of course we guarantee your upgraded lighting with a brand new 5 year warranty.

Remanufacture is typically up to 40% cheaper than buying new, but don’t just take our word for it. Edinburgh Leisure were thrilled by our work under this model, which will save them 70kgCO2e and £15,000 per year.
We can seed the process of remanufacturing with some new lights so that you are never left in the dark. We agree a schedule and we work through your lighting stock with minimal disruption. If you need your project completed quickly, in one step, please get in touch and we can discuss a plan that works for you.

We want to keep your lights running efficiently forever. Give us a call to learn more about our monitoring and maintenance service.

Lighting is a golden opportunity for an organization to position itself for the future because of its ubiquity. Because lights are everywhere, the upgrade to the newest LEDs gives organizations the opportunity to deploy IoT sensors and controllers along (or in some cases within) the lighting infrastructure.

In addition, LaaS doesn't trap you into 'On balance sheet' financing. Introduced in January 2019, an accountancy standard called IFRS 16 drastically changed the way leases and services were displayed on your companies balance sheet. LaaS allows your lighting to be provided 'Off balance sheet'; helping your companies bottom line because you pay only for the light you use, and not the physical lighting infrastructure.

The LaaS model enables services far beyond lighting. These can be launched at any of the periodic scheduled upgrades to your LED technology. They can include sophisticated security, traffic monitoring and the building management system (BMS), among other services. Give us a call to ask about our monitoring and maintenance service in more detail.

When you’re just starting your project you want to know what’s right for your facility, the timeline involved and the costs involved. The first step is EGG will send someone, completely free of charge and obligation, to look at your facility, find out what the job entails, and talk you through your options.

LIGHTING & SENSOR SUPPLY: We have a range of new luminaires and sensors to choose from, to suit the needs of every project. And we can deliver them straight to your door, whether you want to use our electrical install team or not.

LIGHTING DESIGN: How do you know which lights are right for you? We use the latest professional industry lighting design software and follow CIBSE lighting standards. This is a must-have if you have any concerns about light levels affecting forklift safety in warehouse aisles, or high glare affecting your staff wellbeing (the NHS estimates the UK economy looses 86m workdays per year due to migraines caused by glare).

RETURN ON INVESTMENT: The great thing about LED technology is that it’s constantly improving. Whether you have 20 year old fluorescent tubes, or 5 year old LED’s installed, we can save you money. And we’ll put a calculation together for you to show how long it will take for your energy savings to pay back the cost of your new lighting; from the lights themselves through to installation. This is typically less than 2 years. An RoI gives you all the information you need to make the best decision for your organisation, and potentially save hundreds of thousands of pounds on your electricity bills. Easy.

ELECTRICAL INSTALLATION: We have a team of fully qualified electricians. They are highly experienced in lighting and sensor applications, plus civil work (such as digging foundations for lampposts / bollards) and electric vehicle (EV) charging stations.

They have worked in a variety of demanding environments. From working at height indoors and outdoors, to putting scaffolding up on spring floors in a gymnasium, to industrial freezers (while they were turned on), and working around the schedule of Scottish Prison Service in order to carry out work in difference sections without disturbing the routine of the inhabitants.

We’ll sure they can handle anything you could throw at them, and we put a heavy emphasis on leaving the place clean and tidy, so you can enjoy your improved site straight away.

Our award winning remanufacturing department is key to saving customers money, and saving perfectly good lights from going to waste.

BS 8887 defines remanufacture as: “Return a used product to at least it’s original performance with a warranty that is equivalent or better than that of the newly manufactured product.

For our whitepaper on remanufacture in the lighting industry, and a video showing the process, click here: EGG Circular

Remanufacture Assessment: Not all luminaires are suitable for remanufacture. We assess your existing lights to see if they can be remanufactured to an as new or better standard, in a timely and cost effective manner.

Provision of new DfRem luminaires: We can provide new lighting which is designed by us to facilitate future remanufacture services. Keeping your lighting as good as new, for years to come.

Remanufacture of existing luminaires: If your existing lighting is suitable for remanufacture, then we’ll produce a report highlighting the benefits we can achieve. This typically includes luminaires that are 40% cheaper than an equivalent new product. How is this possible? Because our raw materials were your existing lights!

Preventative Maintenance: We use high quality components in all of our remanufacture projects. We also test them and can predict their lifespan at peak efficiency. We can project when the improvements of LED technology, versus the natural wear and tear of your components, results in the ideal time to perform an upgrade. Meaning through informed, periodic maintenance we can keep your lights running at peak efficiency.

Data Passport: The data passport is a digital twin of your physical product. It is accessed through a QR code sticker attached to the housing of the luminaire, and contains information about its unique identifier, component history, and installation instructions. This future proofs your luminaire so that any qualified person could upgrade that luminaire. Because the important thing isn’t that EGG Lighting gets your repeat business, it’s that your light can stay materially valuable for generations to come. 

TM65 Carbon Report: We produce a TM65 carbon report for each of the product lines we remanufacture. This helps your organisation provide evidence in reporting progress towards the governments net zero emissions targets. 

✓✓ CAPITAL FINANCE: Building maintenance professionals report that upfront cost is their top barrier to upgrading to the latest efficiency LED’s. EGG Lighting provide a *ZERO upfront capital option which covers the cost of physical goods, excluding services such as install. We have secured preferential rates with our funding partners to help deliver your project. You get your new energy efficient lighting today, and pay it off over ~5 years.

✓✓ ROLLING WARRANTY: At the end of contract, you can choose to own your lighting as usual, or you can choose to progress with a reduced cost subscription for upgrade, preventative maintenance, and digital services spanning your whole facility. 

✓✓ DIGITAL SERVICES: This is what enables Lighting as a Service (LaaS); designed to save you money from day one, as your lights will have been designed with modular components that we can upgrade with ease. It futureproofs your ability to access to the Internet of things (IoT), Building Energy Management Systems (BEMS), and so much more.

✗✗Off Balance Sheet Assets

What does ‘off balance sheet’ mean?

The defining feature of a service is provision over ownership. To use some classic examples, in netflix’s model you do not own a film; you get the ability to access thousands of films on demand. Or xerox does not sell you a printer; it provides you with the ability to copy and print documents.

The xerox model has some more interesting parallels with lighting. In this model if your printer breaks; it is the manufacturers responsibility to fix it. They are not getting their main revenue stream from you while their service is down, so they are actively incentivised to maintain your product, and to rapidly fix any problems.

Afterall, the manufacturer is the best placed party to know how to repair their own products, and to dispose of parts at their end of life.

Lighting as a Service is very similar. EGG Lighting retains the ownership of your luminaires, and guarantees the level of lumens (the standard measurement of a unit of light) on your desk.

And there a few more reasons businesses are moving to this model. 

Why does ‘off balance sheet’ matter?

This is one service your accountant will thank you for. Introduced in January 2019, an accountancy standard called IFRS 16 drastically changed the way leases and services were displayed on your companies balance sheet.

For example, a company car on a hire purchase lease used to be able to be kept ‘off balance’ and not show up in your companies liabilities. Now, that would no longer be the case because at the end of that agreement you would own the vehicle; therefore IFRS16 determines that it is not a true service. 

LaaS is a True Service

By signing up to EGG Lighting owning and maintaining your product, you get all the benefits of our remanufacture service, and protect your companies bottom line by making your lighting infrastructure disappear as a liability on your companies financial statements. 

Ultimately, off balance sheet LaaS helps your bottom line because you pay only for the light you use, and not the physical lighting infrastructure. 

In Short

While other companies may claim to offer Light as a Service, most are in fact offering normal lights on a normal finance agreement. With EGG Lighting’s Light as a Service model, you get an industry leading remanufacture service, and off balance finance. There is zero financial risk, as we make the capital investment into the upgrade and LaaS is cash generative from day one.

Be the first one in your organisation to notice the tide towards servitisation, and make the smart choice today. Your accountant will thank you for it.

What next?

Whether you want to know more about LaaS, remanufacture, or our commercial lighting services, the next step is a conversation. Speak to us about the options that best suit your organisation on 0141 416 2624 or email [email protected] .

Request a callback

Fill out the form below, and we’ll call you back to discuss the best option for you.