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559-485-6010

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LUMENS AS A SUBSCRIPTION®

Generate Positive Cash Flow with an Upgrade to LED

LUMENS AS A SUBSCRIPTION® (LaaS), provided by Linmore Lighting Services is a Subscription Agreement that includes a new lumen supply system, installation, and maintenance for 10 years.

LaaS helps business owners enjoy the operational and safety benefits of LED lighting without capital upfront. It generates positive cash flow from day one as the monthly payment is funded by the savings created from the new lumen supply system.

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"We opted for the LaaS program at the time because it was a great way to do a new system without making it a cap ex project, rather an operating expense. This has been easy to work with also from our accounting departments standpoint."
Ligon de VogelVP Operations & Corporate Strategy
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"I installed Linmore LED high bays, office lighting, and a parking lot lighting about a year ago under the LaaS program. We had lots of shadows from exhaust ductwork that the new lighting really improved. My guys in the shop love it. I think my savings are greater than projected."
Tom EmerzianOwner
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Financial and Operational Advantages

  • The agreement is a Subscription Agreement, an operating expense, and off balance sheet*.
  • The monthly payment for the Subscription Agreement is funded by savings created from the energy, maintenance, and HVAC savings created by the LED lighting delivering neutral to positive cash flow for most facilities.
  • The opportunity to convert to purchase is available at each 12 month anniversary date
  • NO CAPITAL IS NEEDED UP FRONT
  • Facilities can get the operational and safety benefits of new lighting without waiting for capital approval in years to come.
  • Companies are able to UPGRADE all facilities because capital is not required.

* Accounting treatment determined by customer tax and legal guidance.

Opportunity cost of lumens as a subscription
lumens as a subscription flowchart

Scope of Work

  • New Lighting and Controls per Project Proposal
  • Installation by an authorized, qualified & licensed contractor
  • Full Maintenance over the Term including parts, labor, and lifts
  • Warranty Administration
  • Recycling of Existing Lighting
  • Aerial Lift Equipment
  • System Design
  • Project Management
  • Rebate Administration
  • Shipping
  • Optional: Measurement of Lighting Energy Consumption Prior to Installation and Verification of Proposed Savings after Installation

Frequently Asked Questions

Is LaaS always cash flow positive?

In a word, Yes. 98% of our proposals make monthly profit for our customers. There can be exceptions where a customer wants to include special lighting features or specific controls that add up to the total cost of the system,  making cash flow not positive but still wanting to move forward because of the easy payments, warranty and maintenance the program provides. Secondly, there are some parts of the country where utility rates are very low, and combined with low annual operating hours, positive cash flow may not be possible. 

Who installs the products?

A qualified, licensed electrical contractor.

How to handle rebates?

The LaaS partner will manage the rebate process.

Can I add other products later? (i.e., controls or additional fixtures?)

Yes. The scope of each case will need to be reviewed to confirm.

What type of maintenance does the subscription include?

The maintenance visits include lifts, labor, and parts to restore full functionality of the lumen supply system. 

Does the warranty cover lumen maintenance?

Yes. 70% lumen maintenance is assured.

Is labor included in the LaaS program?

Yes. The subscription includes up to 3 maintenance visits per year. For lower annual hour applications, 1 or 2 maintenance visits per year are sufficient. Your lighting professional can make a recommendation and it will be specified in the LaaS agreement.

Is there interest in the payments? What is the finance rate?

There is no cost of capital or interest rate. The customer is contracting with Linmore Lighting Services to provide and maintain a lumen supply system. The system is owned by Linmore Lighting Services throughout the term and the customer is paying for the use of a maintained lumen supply system.

Can I get out of the LaaS contract before the 10 years are up?

Yes. Beginning at the end of Year 2, and at each anniversary date, the customer can exit the LaaS Agreement by purchasing the lumen supply system.

What if the facility lease is up and the tenant moves to another location?

The subscription can be transferred to a new tenant with credit approval.

Can I renew the Lumens as a Subscription program after 10 years?

Yes, the LaaS agreement can be extended. Rate to be determined.

What happens at the end of the term?

There are three options:

  1. A new LaaS agreement can be entered with new lighting installed.
  2. The expiring LaaS agreement can be extended. Rate to be determined.
  3. The customer can take maintenance responsibility for the lumen supply system. Linmore Lighting Services will abandon the assets in place and transfer title of the system to the customer.