The Status and Promise of Advanced M&V, 2017
Lumens as a Service
How to Capture the Technology-Enabled Business Opportunity For Advanced Lighting in Commercial Buildings
The energy revolution has been fueled by business model innovations that provide services to end users, rather than selling them capital. For solar photovoltaics, the innovation was the power purchase agreement. For mobility, it’s been a shift from personal car ownership to mobility services provided by the likes of Uber and Lyft. To date, buildings have largely been left behind. With Lumens as a Service, RMI has set out to change that.
Why it Matters
There's a $63 billion LED and advanced controls market just waiting to be tapped. In commercial retrofits and new build, LED lighting offers superior technology and a significant return on investment when compared to other technologies, and is expected to grow 45 percent per year through 2020. But, owners and property managers have capacity and capital constraints that limit their ability to assess different lighting system options and pay for the upfront cost to install new systems. The result is a massive underinvestment in advanced lighting systems that could otherwise provide cost savings, boost net operating income, and help better meet the demands of tenants seeking high-performance workplaces.