Upgrade to Led Lighting Today
LED Lighting offers a unique opportunity to significantly reduce your energy consumption. Lighting accounts for up to 40% of a building’s electricity consumption. (1) Moving to LEDs from conventional light sources such as fluorescent, high intensity discharge and halogen, can achieve substantial cost savings. In fact, your lighting energy bill could typically be reduced by as much as 40 – 60%. Adding lighting controls can increase these savings even further.
Some businesses and organisations may not be able to make the capital investment to access these savings. For others, the priorities for capital investment may be geared towards business growth. But whatever the obstacles may be, there is now a solution – finance leasing.
Established lighting manufacturer M-Light International Ltd and expert finance provider, CF Capital plc, can offer personalised solutions so that any business can realise the benefits of switching LED lighting today by leasing – or renting – your lighting.
So no upfront costs and a raft of other benefits.
1 – Source: Carbon Trust
How Finance Leasing of led lighting works
SURVEY & DESIGN
M-Light International Ltd are experts in the field of lighting manufacturing and proposing the best lighting solution for you. Our experienced field engineers will visit your site to assess the existing installation and measure current lighting levels. They will also discuss your requirements in detail. We then carry out a full, professional design. Our team of qualified lighting design engineers will ensure that all proposals comply fully with the requirements of EN12464-1:2011, the SLL Code for Lighting and all best practice guidelines.
We carry out a Total Cost of Ownership analysis, comparing the existing installation with that proposed. Firstly, we analyse the quality and cost of the lighting. This will include usage hours, electricity tariffs, lamp replacement and other maintenance costs. As a result, we can project the annual savings and payback period achieved by changing to LED lighting. So, you can see how much money you will save!
PURCHASE OR LEASE
Following the design and analysis we will produce a full, written quotation for the new lighting and provide an explanation of what we are proposing. Once you are happy to proceed you can, if you prefer, purchase the lighting outright at the prices quoted. Alternatively, if you would prefer to lease the lighting, we will introduce you to finance lease specialists CF Capital plc. They will prepare a personalised illustration which will include the payment term and fixed monthly cost of rental.
Once you give the go ahead, we arrange delivery of the product. If you want to include installation in the leasing agreement, this can be included in the lease illustration. If you wish, we can recommend an electrical contractor to carry out the work. Once installed, you start making savings immediately. CF Capital will organise the lease payment terms.
M-Light International Ltd operate to very high-quality control procedures. Very occasionally products may fail prematurely. We therefore offer complete peace of mind by providing a full warranty throughout the lease period, for up to 5 years (emergency lighting 2 years). We will replace or repair the luminaires completely free of charge.
At the end of the leasing agreement, you have the option to take advantage of the continual improvements in LED efficiency and upgrade to the latest technology, by arranging a further lease agreement. Consequently, this removes any worries of using redundant technology. Simply trade up to the latest, most energy efficient products available with continued full warranty.
IMPROVED, LONG LIFE LIGHTING
Trade up to LED lighting and comply with the latest legislation on lighting levels and quality. LEDs have extremely long life characteristics, so you can look forward to years of reliable, lowcost lighting.
SAVINGS PAY FOR LEASE
Enjoy reduced energy and maintenance cost benefits from day one. The money you save could partly or even fully fund the leasing costs.
NO UPFRONT COSTS
Don't Worry If you don't have the funds available to carry out the upgrade. Choosing finance leasing mean you don't need any money up front - so valuable working capital is not tied up.
Your leasing costs are fixed throught the term of the agreement, so no interest hikes.
TAX EFFICIENT BENEFITS
Finance leasing has majpr tax advantages. Rental payments are 100% allowable against pre-tax profits, potentially saving you a futher 19%*.
CASH VS LEASE BENEFITS - TYPICAL EXAMPLE
Equipment cost £7500 + VAT, Lease period 3 years, Corporation tax @ 19%*
|Year||Capital Allowance||Tax Relief|
|1||18% of £7,500 = £1,350||@19% = £256.50|
|2||18% of £6,150 = £1,107||@19% = £210.33|
|3||18% of £5,403 = £907||@19% = £172.33|
|Total Tax Relief||£639.16|
|Year||Allowable Business Costs||Tax Relief*|
|1||12 rentals of £252 = £3,024||@19% = £574.56|
|2||12 rentals of £252 = £3,024||@19% = £574.56|
|3||12 rentals of £252 = £3,024||@19% = £574.56|
|Total Tax Relief||£1,723.68|
*Note:the current rate of Corporation Tax is 19% under current plans this reduces to 18% in 2020. This may change with future Government Budget announcements. The potential saving shown assumes the current rate of 19% and that your business is making profit. Please consult your accountant for details.
LED lighting is highly reliable, when sourced from a reputable manufacturer. We are so confident inn our products that we provide a no quibble 5 year warranty (emergency lighting 2 yeares).
Meet carbon reduction targets and instanly lower your organization carbon footprint. This saves costs, generates positive PR and is a huge contribution towards Corporate Responsibility
At the end of the lease you have the option to upgrade to the latest advancements and benefits of LED technology with another finance agreement.
EXAMPLE LED LIGHTING UPGRADE PROJECT
Here is how it works, based on a real lighting project - an outlet of a national retail chain.
|No. of light fittings||564||564|
|Lamp type||35W & 70W CDM-T/TC||LED|
|Capital cost of light fittings||-||31,151|
|Capital cost of installtation (estimated at 20 per point)||-||11,280|
|Total capital costs||-||42,431|
|Electrical load||30,033 kW||11,466 kW|
|Annual burning hours||3426||3426|
|Electricity traiff/kWh (estimated)||0.13||0.13|
|Annual energy costs (tariff x load x hours)||13,376||5,107|
|Average rated service life of lamps||8-12,000 hours||50,000 + hours|
|Annualised lamp replacement costs (based on bulk planned replacement every 3 years at 10 per lamp)||1,880||-|
|Annualised lamp replacement labour costs(estimated at 3 per point)||5,64||-|
|Total annual maintenance costs||2,444||-|
|Total annual running costs (energy + maintenance)||15,820||5,107|
Project payback period (Capital costs / annual savings) = 4 years
ILLUSTRATION OF TYPICAL MONTHLY LEASE COSTS FOR THIS PROJECT
|Equiment and Installation Capital Cost = 42,431|
|5 Year Lease Illustration||Monthly Cost|
|60 monthly payments||939.00|
|Potential tax saving (based on corporation tax at current rate of 19%*)||10,704.58|
|Potential Net Cost (If full tax saving are realised)||45,635.30*|
|Monthly Cost Summary|
|Actual monthly lease payments||939.00|
|Potential net monthly cost after tax relief*||760.59|
|Monthly savings (energy & maintenance)||892.75|
#This is based on the current rate of Corporation Tax of 19% under current plans this reduces to 18% in 2020. This may change with future Government Budget announcements. which will affect the potential saving. The potential saving shown assumes the current rate of 19% throughtout the lease period and that your buiness is making profit. Please consult your accountant for more details.
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