2. If there was a FREE program,
that allowed you to eliminate
certain expenses from your
budget, helped to save energy
and reduced your carbon
footprint, and it also gave you a
powerful hedge against inflation.
Would you participate?
3. PRESENTATION OBJECTIVES
Show you how to turn your utilities expense into a long term
positive cash flow for your business.
Eliminate certain expense line items from your budget.
Help the environment by reducing your carbon footprint.
Show what makes FES different from any other lighting
company you will speak with.
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6. Multi-National Green Technology
Lighting Manufacturer.
S.F. Business Journal2015
Company of the Year
ISO9000:2008 Certified
“Lighting as a Service” business
model – ZERO CAPEX for clients.
FES: TARGET MARKET SECTORS
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9. Selling LEDs Generates the highest up-front commission.
Creates mandatory brand loyalty due to proprietary designs.
Greatly increases opportunities for system failures generating sales of parts, service and repairs.
10. LEDs
THE MAINTENANCE TROJAN HORSE
Before
This California used car dealership had the
following configuration prior to installing LED’s:
40 - double lamp 1,000 WATT MH fixtures
10 - single lamp 1,000 WATT MH fixtures
8 - Exterior 400 WATT MH Wall Packs
3 - Exterior 400 WATT MH Signage Flood lights
Exactly 101 Bulbs and ballast . 202 Points of Failure
After
40 - double lamp 400 WT LED fixtures (8000 diodes)
10 - single lamp 400 WT LED fixtures (2000 diodes)
8 – Ext. 200 WATT LED Wall Packs (800 diodes)
3 - Ext. 200 WATT LED Signage Floods (300 diodes)
Each LED fixture also has a power supply, heat sink, and
driver as additional points of failure.
11. Early Failure rates are as high as 7% within the first 6,000
hours on a 60,000 rated lamp.
Lowest failure rates were between 6,000 to 12,000 hours
averaging 3% and increasing rapidly thereafter.
From 20% to 50% of rated life failure rates averaged 10%.
17% failure rate at about 50% of the lamps rated life.
Manufactures documentation explains warranty coverage
is only applicable to 80% of rated life. Most lamps will need
to be replaced before they reach their rated lifespan.
Average failure rate of 7% is considered wise when creating
financial models.
Courtesy of Publication# PNNL-SA-97534 • August 2013
U.S. DEPARTMENT OF ENERGY
Fact Sheet: Solid State Lighting
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13. One HID 1000 WATT MH Bulb
One HID Ballast
200 LEDs in 10 diode configurations 1 array = 10 lights
One LED voltage regulator and power supply
One LED driver
One Heat sink
Integrated casing
14. L.E.D. Is an acronym for Light Emitting Diode.
Light source is integrated to so that if a component goes bad the entire fixture must
be repaired or replaced.
New and improved models every few years to make existing fixtures obsolete, i.e.
iPhone 3,3s,4,4s, etc…..
15. When a diode goes bad it can be replaced. Unfortunately, they are
integrated into arrays. Normally, 8,10,15 or more to one array depending
on the proprietary design.
17. No one has perfected the heat sink design. Which is one of the reasons there is no standardization.
When paint and heat collide a color shift will occur.
The color of the light from the new arrays will never match the remaining diodes.
Over time after a few repairs the lamp will begin to resemble a Christmas tree.
18. Poor lighting reduces consumer
confidence.
Uneven lighting levels create safety
concerns and could cause accidents.
For certain business such as car
dealership lighting aesthetics can
have an impact on sales.
Christmas Tree effect and functional
obsolescence by design.
19. LEDs
THE MAINTENANCE TROJAN HORSE
Before
This California used car dealership had the
following configuration prior to installing LED’s:
BEFORE
AFTER
Exactly 101 Bulbs / points of failure
10% Failure rate
10 replacement lights
10 service calls
Exactly 11,100 Bulbs / points of failure
2% Failure rate
222 Diodes failed - 2,200 LED arrays replaced
?# Service calls, much more than 10
20. GOLD INITIATIVE PROGRAM
Side by Side 15 year / 25 YEAR
scenario comparisons
Programmable assumptions include number of fixtures,
wattage, maintenance cost, failure rates, hours, kilowatt
cost, cost per fixture, Life Expectancy ASSUMPTIONS DO NOTHING BUY LED'S GOLD INNITIATIVE
NUMBER OF FIXTURES 110 YEAR New Energy Cost & Fixed Payment
WATTAGE 400 1 23,971.46 101,244.42 16,049.36
Maintenance cost old tech $250 2 24,211.18 11,898.09 16,192.02
Average Monthly Failure rate Old Tech 1.500% 3 24,453.29 15,044.28 16,263.35
Hours 12 4 24,697.82 18,676.25 16,334.68
Kilowatt Cost $0.099 5 24,944.80 22,454.22 16,406.01
Days per year 365 6 25,194.25 26,384.07 16,477.34
Inflation 1.00% 7 25,446.19 30,471.89 16,548.67
Monthly maintenance cost $412.50 8 25,700.65 34,724.04 16,620.00
Monthly Energy Cost $1,585.12 9 25,957.66 148,107.67 16,691.33
LED COST PER NEW FIXTURE INSTALLED $900 10 26,217.24 41,745.39 16,762.67
Life expectancy in months 96 11 26,479.41 48,489.70 16,834.00
Maintenance cost LED (10 diodes per repair) $500 12 26,744.20 55,331.74 16,905.33
Average monthly LED maintenance cost $137.50 13 27,011.65 62,272.46 16,976.66
High Efficiency Lighting Wattage 150 14 27,281.76 69,312.87 17,047.99
High Efficiency Monthly Energy Cost $594.42 15 27,554.58 76,453.95 17,119.32
LED FAILURE RATE 0.2500%
Annual rate for Opportunity Cost? 2.990% 15 YR TOTAL COST $385,866 $762,611 $249,229
Program Fixed Payment amount
15 Year Total
Savings vs. FES $136,637 $513,382
$743.03
HUNTER HYUDAI MITSUBISHI Pro Forma
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30. FREE program, ZERO CAPEX
Eliminate maintenance cost
Reduce energy usage by 65%
Reduce your carbon footprint
Powerful hedge against inflation
Do the right thing for the planet and
for your bottom line. Apply today.