The Sunnect Lighting Shared Savings Agreement (SSA) allows customers to implement an LED Lighting upgrade with zero financial risk and no capital expenditure. The money to construct the project comes from the savings the project creates on your monthly electric bills. Since repayment does not require the full amount of the monthly savings, you get a portion of the savings from Day 1. When the program reaches its maturity the equipment is yours to keep and all the savings from that point forward are yours.
What does Shared Savings mean?
It means that savings created by your LED retrofit project are shared by both the project owner and Sunnect Lighting. How these energy savings are distributed depends on the owner’s wishes and the constraints of the repayment terms. For example, an owner can choose to allocate all or most of the energy savings created in the early years towards repayment. Or, you might instead choose to pocket a larger portion of the savings up-front and prolong the term for repayment.
How are savings determined?
To determine savings, Sunnect Lighting compares the historic electric usage at a property against the lower usage inherent to the use of LED lighting. The difference between the two are the savings. The payment of your LED project comes from these savings and any excess savings are retained by the owner.
What does Shared Savings mean?
No. Shared Savings is not an up-front cash incentive, so there is not the same immediate financial incentive as rebates provide. Because the project cost has to be repaid through your electric bill savings, the financial reward comes from the energy savings in excess of the repayment obligation over time.
Why should I be interested in a Shared Savings Agreement?
It can allow you to make a cost and energy saving LED lighting improvement to your property at no net cost. This can free up your CAPEX budgets for other projects and allow you to switch to better lighting without having to wait for funds to become available. Finally, the Shared Savings Agreement can be paid in full at any time without penalty or cost.
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