How Can a Business Get LED Light Bulbs For Free?
The Carbon Trust Green Business Fund is one way to get up to a £10,000.00 contribution for Small and Medium sized business in the UK.
How to install LED lighting technology into your business, which is cash neutral.
Let’s look at an example
Your company has 200 halogen spotlights on for 10 hours per day, 250 working days per year
Their cost of electricity is 12.2p per kilowatt hour
Their existing bulbs at 50 watts output each, to be replaced on a like for like basis with a 5 watt bulb
200 bulbs x 50 watts per bulb x 10 hours per day x 250 days per year = 25.0m/1000(kw)= 25,000
25,000 kwh x 12.2p per kwh = £3,050.00
200 bulbs x 5 watts per bulb x 10 hours per day x 250 days per year =
2,500 kwh x 12.2p per kwh – £305.00
A saving of £2,745 per year or £13,725.00 over five years
Now let’s look at the cost of buying these via a lease
200 bulbs at £35.00 = £7,000.00 (This will include the de-installation of the old halogen bulb and the replacement of the LED bulb. We advise you to purchase a branded LED bulb, rather than a lower quality import. (Which many leasing companies will not fund anyway.)
A £7,000.00 lease over five years will work out at £154.00+VAT per month, the total repayments being £9,240.00, plus an on/off administration fee of £150.00.
Hence, the saving is £13,725.00 less £9,240.00, = £4,485.00
Is it really free?
One could argue no, as there is a monthly lease repayment. However, if you lease the LED bulbs, you will not have to pay for them, we do. You will only have to pay a monthly lease of £154.00 but you will be saving £228.75 per month off your electricity bill, a net difference of £75.00 per month.
Why isn’t every company doing this?
Well, from our understanding, there are a few key reasons.
1. Red tape- Too much paperwork to complete
2. Maximum contribution of 15%- The most you can claim is 15% of what you spend, so if you are actually spending £10,000.00 on lighting, (what an SME might be spending in the first place), that is only a £1,500.00 contribution.
3. Restrictions- You have to employ less than 250 people and you are restricted to where you buy the lighting. It must be from an approved suppler in the Green Business Directory, they clearly state this is on a first come first serve basis.
How can WestWon help?
It is quick and easy for WestWon to set up a lease.
• We will have to run through credit approval which can be done within the day
• Agree and approve with you the supplier and what bulbs they will be suppling
• We will email a lease document to you, which needs to be signed
• Installation takes place, then we pay your supplier in full
Our team are on hand to help out with any questions you have. Please just call 01494 611 456