Financing
Three ways to fund the project.
Capital purchase, Lighting as a Service, or stacked utility rebates and incentives. We structure every proposal for the most financially efficient path.
Three Paths
Match the funding to how the project should sit on your balance sheet.
We build every proposal to work three ways. Once your CFO or controller sees all three side-by-side, the right structure is usually obvious.
Capital purchase
Traditional CapEx.
You fund the project directly and take full ownership from day one. Best when the payback math is strong on its own and the balance sheet has capacity. Every dollar of energy and maintenance savings drops straight to your bottom line — and depreciation, rebates, and tax credits are all yours.
- Full ownership, full savings — nothing shared with a lender
- Depreciation and accelerated cost recovery where eligible
- Rebate proceeds credited against project cost
- Every measured dollar of savings drops to your bottom line
Lighting as a Service (LaaS)
Zero capital. Cash-flow positive from month one.
A fixed monthly payment replaces the upfront project cost. Terms typically run 48–60 months, sized so the monthly payment stays below the monthly energy and maintenance savings the project produces. You pay from operating budget, not capital, and the ledger is net-positive every month from month one.
- Zero upfront cost — no capital appropriation required
- Monthly payment sized below your monthly savings
- Buyout options available at pre-agreed milestones
- Warranty, verification, and service included for the term
Rebates + tax incentives
Stacked with either funding path above.
Utility rebates and federal tax incentives are identified, pre-approved, and captured before the first fixture ships. In most markets these two layers cover 15–50% of project cost outright. They can be stacked with a capital purchase, a LaaS structure, or combined for the fastest payback available.
- Utility rebates pre-approved before material is ordered
- Accelerated depreciation on qualifying property
- Applicable federal and state incentives applied where eligible
- Rebate paperwork and documentation handled in-house
Lighting as a Service, in detail
A monthly payment that’s smaller than the savings it produces.
LaaS is the option most of our clients choose when the project is too large for the year’s capital budget, or when the CFO wants electrification off the balance sheet entirely. The structure is straightforward: we install and maintain the system, you pay a fixed monthly amount for a defined term, and the payment is sized below the savings we’ve measured on similar buildings.
No capital request. No CFO approval.
Because the monthly payment comes from operating budget, LaaS projects don't require a capital appropriation. That's the difference between a project that ships this quarter and a project that gets tabled at the next capital review.
Cash-flow positive from month one.
The monthly payment is structured to sit below the monthly savings the project generates. You're not paying to save — you're pocketing the delta from the first month the lights turn on.
One accountable operator for the full term.
For the length of the LaaS agreement, we own the system: warranty, service, and measured verification. When something needs attention, there's one number to call — and we're financially motivated to keep the system running at spec.
Predictable, budgetable, forecastable.
A fixed monthly amount replaces a lumpy capital line item. Property managers, controllers, and asset managers know exactly what the project costs every month for the term — and they know the savings are measured, not projected.
The Math
Every proposal shows all three structures.
We don’t force a funding path. Every proposal shows capital purchase, LaaS, and the stacked-incentive route side-by-side — with the same measured savings feeding each structure — so your controller can pick the one that fits your balance sheet.
Numbers reflect ranges from measured projects. Your proposal is priced from your actual utility bills and rebate program.
Included in Every Proposal
All three paths, priced from the same measured data.
- Capital purchase pricing with net-of-rebate investment
- LaaS monthly payment for 48- and 60-month terms
- Buyout schedule for the LaaS structure
- Utility rebate application and pre-approval
- Depreciation and applicable tax-incentive scenarios
- Measured savings benchmarked against completed projects
- Cost-of-delay analysis if the project waits a quarter
Financing questions we hear most.
Is LaaS a lease or a service agreement?
It is structured as a service agreement, not a lease. That means the equipment is not carried on your balance sheet, the payment sits in operating expense rather than capital, and there is no depreciation obligation on your side.
Who owns the equipment during the LaaS term?
We own the installed equipment for the duration of the agreement. Ownership can transfer to you at a pre-agreed buyout milestone — typically at 24, 36, 48, or 60 months — at a defined residual value that is disclosed at the start of the agreement.
What happens if we sell the property during the LaaS term?
The service agreement can transfer to the new owner as part of the sale, or you can buy out the remaining term at the pre-agreed schedule. In both cases the mechanics are documented at contract signing so there are no surprises at closing.
Do rebates and tax incentives stack with LaaS?
Utility rebates are captured either way and credited into the LaaS pricing so your monthly payment reflects the post-rebate cost basis. Accelerated depreciation and applicable federal or state tax incentives typically apply to the capital purchase structure rather than LaaS, because we own the equipment during the LaaS term. We show both scenarios so your controller can compare the after-tax outcome directly.
How long is the LaaS term?
Typical terms are 48 or 60 months. Shorter terms are available where the client wants to accelerate the buyout, and longer terms are available for larger portfolios where the savings math supports it.
What is included in the LaaS monthly payment?
Installed equipment, warranty coverage, measured verification of savings, replacement parts, and service response during the term. There are no separate maintenance invoices, no parts markups, and no service-call fees during the agreement.
How does the math work if I want to buy the project outright?
Every proposal shows the full capital-purchase structure: net investment after rebate capture, applicable depreciation schedule, and the year-by-year cash flow. If the year's CapEx budget is tight, LaaS gives you the same savings without touching it.
What if my utility does not have a rebate program?
Many still do — utility rebates change frequently and we track them by market. We tell you upfront what your utility offers, what you qualify for, and what to expect from the application. Where rebates are limited, the capital purchase math still stands up on energy and maintenance savings alone.