LED ECONOMICS

• Converting an existing building to LED lighting or installing LED lighting in a new building creates a compelling value proposition for the building owner.
   
• Economic benefits of LED lights include: reduced electricity consumption; increased product life expectancy; lower maintenance costs; lower cooling costs; tax benefits; utility company rebates.
   
• The economics of LED lights can result in recovery of the cost of the investment in less than one year in some cases.
   
• The return on investment (“ROI”) regularly exceeds 20% and can go as high as 50%.  This is a unique opportunity for a building owner to achieve this level of return. 
   
• Reduced operating costs increase the value of a building.  E.G., a $0.1 million reduction in lighting costs increases the building value by $1.4 million at a 7% cap rate.

  

• AES can direct its customers to an AAA-rated financing institution which can provide 100% financing of an LED installation.
   
• The financing can be structured to match the savings achieved by the LED lighting such that there is no negative cash flow over the 1 to 3 year investment payback period after which the customer receives 100% of the project cash flow savings.