Philips Introduces ‘Lighting as a Service’Sustainable Business, January 23, 2014
Washington, DC is following in the footsteps of a bunch of cities that have – or are in the process of – switching their lighting to LEDs. But unlike the other cities, Washington isn’t paying the high costs of making the switch – it is taking advantage of Philips Lighting’s (which manufactures the LEDs) first foray into offering a “lighting as a service” model.
While the model is commonly used to finance building retrofits, it hasn’t been used for lighting. Philips will pay the upfront costs of installation and be compensated through a performance contract – the energy savings the retrofit produces.