Dutch firm, Philips Lighting has selected SUSI Partners and their SUSI Energy Efficiency Fund (SEEF) as financing option to deploy Light as a Service (LaaS) projects throughout Europe. The company intends to help European lighting customers upgrade their lighting to more energy-efficient alternatives and reduce carbon emissions.
Philips Lighting’s LaaS business model includes the design, building, operation and maintenance of new lighting installations.
Most importantly for the customer, with LaaS, the benefits of the efficient lighting systems can be obtained with no upfront investments and the costs of the lighting spread over a predetermined period. So, the customer can immediately realize savings on energy costs and can begin repaying for the project from these savings.
Under Agreement Philips Lighting Can Embed Financing from SUSI Partners
Also as part of the service contract, Philips Lighting guarantees the outcome based on light levels, energy, and uptime. Under the terms of the agreement, Philips Lighting can embed financing from SEEF into its customer proposals, on a flexible and repeatable basis. The initial agreement covers projects in Germany, Belgium, the Czech Republic, Poland, the Netherlands, Spain, and Portugal, with other countries soon to follow.
“We believe that our collaboration with SUSI will have a significant impact on the sustainability profile of our customers in Europe,” said Stéphane Rougeot, CFO at Philips Lighting. “Light as a Service projects have an important contribution to the objectives set out in our Brighter Lives, Better World sustainability program and contribute to the rapid growth of our systems and services business.”
By 2020, Philips Lighting hopes to earn 80% of its total revenue from sustainable products, systems, and services. In 2017, the company achieved 77.3% sustainable revenues.
“We are proud to have a pan-European cooperation agreed with such a renowned and knowledgeable partner as Philips Lighting, underlining SEEF’s strong value proposition for international energy service companies,” said Alexander Hunzinger, managing director at SUSI Partners AG.
The first portfolio of projects has already been implemented with the SEEF financing, which Philips Lighting expects to fully deploy by the end of 2018.