archived
Estimated reading time 2 min
This post has been archived and may include outdated content

LED lighting as a service

Valtavalo sells light instead of light bulbs. The product is a service, which means that the company is committed to the product’s longevity starting from the design stage. Valtavalo’s service model conserves energy and helps customers save on lighting costs. The customer pays for the service based on the savings. The financing partnership which enables Valtavalo’s business model is an integral part of the solution.

Published

Problem

Lighting accounts for a significant part of the energy consumption and costs of business facilities. How can they be reduced, when conventional fluorescent lamps offer poor energy efficiency?

Solution: an energy-efficient LED lighting solution as a service

The standard service model includes initial mapping and the supply of lighting sources. Installation and maintenance services are optional. Valtavalo’s energy-efficient, long-lasting and environmentally friendly G-series LED tubes can be installed in existing light fittings. The solution also makes it easier to manage larger lighting systems. In 2018, Valtavalo’s LED solutions helped save a total of 3,615 tonnes of carbon dioxide emissions, the equivalent of four thousand return flights between Helsinki and New York.

Revenue logic and benefits to Valtavalo

Increased sales among customers who have a high investment threshold for new lighting solutions. The service agreement period ranges between three and five years. Thanks to the financing partner, Valtavalo immediately receives income on the products included in the service. The products are identified by serial numbers, which means that the finance company can repossess the products easily, if the user does not pay the instalments.

Benefits to customers

The service requires no initial investment outlay, and the monthly service charge can be offset by the savings provided by the service. The service can reduce lighting costs by up to 50% – the charge is less than the customer’s previous electricity bill. The monthly service charge is tax-deductible and easy to budget for. Outsourced installation and maintenance costs also lead to additional savings. There are no unexpected maintenance works or repairs.

What's this about?