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www.IndependenceLED.com MADE in USA 1
Prepared for:
Lighting Retrofit Proposal
Domino’s Pizza Franchise Owners
CLEAN TECH
www.IndependenceLED.com
MADE in USA
2
TAS
TE
TES
T P
RO
MO
The 2014 LED Taste Test Includes:
SAVE 65% On Electricity
NEW YEAR’s RESOLUTION: Taste Test LEDs for performance in light output, color and savings. Step 1: You let us know one or more fixture types in your location, the weekly hours of operation, and your average electricity cost. Step 2: We recommend the “match” with our line of LED products and coordinate the sample installation. Step 3: We provide a Savings Report including key data points such as: • Current Annual Cost to Operate Your Lights • Savings with LEDs in Your Property • Return on Investment (ROI) Plus, $0 Upfront Cost Financing Options
and our Off-Balance Sheet Lighting Service Contracts. Step 4: You review the LED “match” in your ceiling and Savings Report. You owe it to yourself to review the LED Savings Advantage and set a course for monthly operating cost reduction in 2014. All we ask is for a security deposit (Typ. $100) on the Sample LEDs, which is 100% refunded if for any reason you want to return the energy saving lighting.
Our $100 “Taste Test” Promotion is a $500 Value with Sample LEDs, Installation and Savings Report Analysis. 100% Satisfaction Guarantee or your money back.
Spend $100 to Save Thousands
We provided the first LED retrofit for a Domino’s Franchise
www.IndependenceLED.com 3
Case Study
More Case Study: www.independenceled.com/dominos-pr-and-case-study
The Challenge The production area in Domino’s was poorly lit, creating a difficult work environment. The existing lighting, T12 fluorescent tubes, was costly to maintain both from a maintenance and energy consumption perspective. Domino's was looking to increase the overall amount of light per square foot on their work surfaces, while also substantially decreasing the amount of energy consumed per square foot. It was essential to have the proper color temperature of light in order to reduce employee fatigue due to the fact that there was no outside natural lighting. Domino's also wanted a high quality product with a substantial warranty backed by a solid company. Additionally, Domino's preferred lighting products manufactured in the United States. Since the market offers multiple lighting choices with many variables and different advantages and disadvantages, Domino’s chose to hire Vanguard Energy Services to help overcome the challenges and reach their goals.
The Solution The retrofit solution yielded: Energy savings over 70 % Payback time in less than two years ROI over 40% The energy service provider chose Independence LED product s because of their unique patent-pending thermal management system, superior light color quality and uniformity, state-of-the-art lumen efficiency output, external driver, and because of an exclusive industry first 10 year warranty which is backed by a Pennsylvania-based manufacturer. Due to the high output of the new LED replacement tubes Vanguard was able to successfully de-lamp by removing the existing four T12 tubes in each fixture and replacing them with two high output T8 LED tubes in the production area of the restaurant.
The Result Originally the twenty-one fixtures in the restaurant held four lamps each, which could be cut down to two LED bulbs for each fixture. By changing out the existing lights for LED lamps, the costs of running the lights for about fifteen hours a day, seven days a week was cut drastically. Also, the watts consumed per lamp were cut roughly in half with the change to the LED lamps. The total energy savings of the LED results in a very small payback period on the initial investment, being 1.68 years. The new lamps also reduced emissions by 43% for each year of use.
www.IndependenceLED.com 4
Sample Media Press Coverage
www.IndependenceLED.com
Your local Domino’s recently replaced its old fluorescent lights with new energy-efficient American Made LED tubes. With $0 upfront cost, your business can save 20% on electricity for lighting each month, and get a FREE PIZZA PARTY each month.
GREAT TASTE of SAVINGS OFFICE PIZZA PARTY PROMOTION
FREE
Qualifications: Businesses with
over 10 employees or over 2,500 sq. ft. of office space qualify for five free large any topping pizzas and choice of sodas for the monthly pizza parties. Independence LED provided the retrofit for the first Domino’s Pizza, and they are sponsoring this “Great Taste of Savings” program.
FOR A YEAR EVERY MONTH
For Details Call: 484-588-5401
www.IndependenceLED.com 6
Appendix
LED Product Data For Specification Sheets, LM79, and IES Files See:
www.independenceled.com/led_tube_spec_sheets
Appendix Includes: • Data Highlights • Company Overview • Company Leadership • Market Traction: Government • Market Traction: Corporate • Troffer Retrofit Comparison
www.IndependenceLED.com 7
Data Highlights Savings
The cost of illumination includes the hours of operation, so this Report is based on an illumination run time as follows: M, T, W, Th, and Sun: 10 am – Midnight: 14 hours F:, and Sat: 10 am – 1 am: 15 hours We have factored in an hour for set up and closing to add 2 per day for a total of 114 hours per week over 52.14 weeks for 5,944 Annual Hours of illumination.
Get new lights that SAVE over $1,000 each year at no up front cost to you. Plus, generate MORE Sales through the Promotion and Pubic Relations. (See the Appendix)
Location
Total
Annual
Hours
# of
FixturesExisting Light
Existing
Fixture
Wattage
Replacement
LED
LED
Fixture
Wattage
Watts Saved
%
Customer Area, Kitchen
& Storage5,735 20 4L 4' T8-32W Delamp Potential 4 to 2 128
2L 4' LED-22W 2 Tube Driver for
Delamping44 66%
DOMINO's PIZZA Estimated Property Size Sq. Ft.: 2,500 1/5/2014
Sample LED (De-Lamping): 20 Fixtures Calculated Retrofit Area(s) Sq. Ft.: 2,560
Georgia, USA Annual Current Cost Per Sq. Ft.: $0.52 Watts/Sqft:
Annual LED Cost Per Sq. Ft.: $0.18 ASHRAE: 1.6Price per kWh: $0.090 Current: 1.00
Annual kWh Saved: 9,635 LED: 0.34
70%
Annual Lifetime
Current Lighting Electricity Cost $1,321 $15,962Projected Lighting Electricity Cost (LED) $454 $5,487
Reduction in Electricity Costs with LEDs $867 $10,475
Additional Operating Savings: Annual Lifetime Bulb Replacement Savings $46 $480 Maintenance Labor Savings $128 $1,339 Reduced Air Conditioning Load $26 $314
Total Additional Operating Savings $200 $2,133
Annual Lifetime
$1,067 $12,608*Bulb Replacement Savings based on standard cost of existing lamps
*Maintenance Labor Savings based on $0.01/sq. ft. for Parking Garages, and $0.05/sq. ft. for all other facil ities
*Reduced Heating/Air Conditioning Load based on an average of $0.03 for every dollar saved on lighting
*Lifetime calculations based on rated lifespan of each product. Weighted average rated life of LEDs = 10.5 years
ANNUAL LIGHTING SAVINGS:
SAVINGS REPORT
Total Savings with LEDs
www.IndependenceLED.com 8
Data Highlights Financing
Payback (Months) ROI
Cost of LED Product $2,750 ------------> 31 39%Installation Estimate (15%) $413
Less Tax Deduction Cash Value
Est. Rebate ($.10/Annual kWh Saved) ($964)
Total Net Cost to Customer $2,199 ------------> 25 49%
Note: Pricing valid for 45 days from issue; does not include sales tax and shipping
NPV: $4,308 12% Discount Rate IRR: 56%
OPTIONS #2: On-Balance Sheet FINANCING Finance
Adjustable Initial Cash Outlay $0 Payments Net Cash Flow29 Months @ 7.5% ($88.92) $0.0036 Months @ 7.5% ($68.40) $20.5260 Months @ 7.5% ($44.06) $44.86
OPTION #3: Energy Saving Share SERVICE Service
Payments Net Cash FlowAdjustable Ini tia l Cash Outlay & Months $1,375
12 Months @ 7.5% ($78.63) $10.29
% Split on Lighting Savings 88% 100% 12%
Savings during the Service Period: $124
Added Savings during 100% Period: $11,541 (For the months following the Service Period with $1 buyout)
Total Lifetime Savings for this Option: $11,664 This is based on the average LED life for this facility
Federal Tax Deduction Available $1,536 ($.60 / sq. ft.)
Tax Deduction Cash Value $538 (Based on 35% tax bracket)
Property Value Increase $10,671 (Based on 10% cap rate) 13
EcoAdvantage: CO2 Emissions Reduction 151,302 lbs. or SUVs off the road
*EPAct Federal Tax Deduction is an estimate based on standard IRS and DOE guidelines. Actual numbers may vary.
*Only areas that have bi-level switching qualify for EPAct incentives (80% of space or more typically qualifies).
*Property Value Increase calculated with 10% cap rate applied to reduction in operating costs.
*EcoAdvantage: based on 1.3 lbs. of CO2 for every kWh of electricity saved (l ifetime estimates).
ACT NOW! GO GREEN AND SAVE!
Daily Cost of Waiting $3 $89Monthly Cost of Waiting
BONUS INCENTIVES
FINANCIAL ANALYSIS
LED Savings
$88.92$88.92
Monthly Cash Flows
Monthly Cash Flows
$88.92
LED Savings
Note: The number of months is adjustable up to a 10 Year (120 months) Term or 7 Years (84 months) for 24/7 facilities.
OPTION #1: PURCHASE
$88.92
www.IndependenceLED.com 9
#1: Proven Track Record #2: Multiple Industry FIRSTS #3: The Made in America Advantage #4: The Right Technology for Longevity #5: The Right Quality Assurance & Warranty #6: The Right Management & Support Team #7: The Right Auditing & ROI Software #8: Rebate Ready Products #9: Industry Leadership #10: $0 Down Financing
10 Reasons why Independence LED is the preferred choice in the LED Tube and Fixture marketplace.
Independence LED is a leading U.S. Manufacturer of award winning high-efficiency LED tube retrofit kits and fixtures that replace the less efficient fluorescent tubes, troffers, parking garage fixtures and industrial high bays that dominate commercial lighting. The Company is committed to building the highest quality and most reliable “Mission Critical” commercial and industrial LED lighting products on the market. In 2010, Independence LED moved its manufacturing from China to southeastern Pennsylvania. The Company has installations across the Fortune 100 from Morgan Stanley to MetLife and in the public sector from multiple NAVY ships to the first Veterans Affairs Hospital. Independence LED has patent filings in over 40 countries and provides a 10 Year Warranty that is the strongest coverage on the market. In addition to winning the Green Business of the Year in 2011, the Company’s LED tubes won the 2013 Best Lighting Retrofit by the US Green Building Council for the Urban Green Award. Independence LED plays an increasing role in the Global Energy Revolution.
Company Overview
www.IndependenceLED.com 10
Old Tubes: Fluorescent New Tubes: LED
32 Watts 20,000 Hour Life
(7 years)
12 Watts 60,000 Hour Life
(20 + years)
LED PERFORMANCE: 50% to 65% Savings
2013 Winner Best Lighting Retrofit
Industry Leadership
www.IndependenceLED.com 11
PUBLIC SECTOR Energy Savings
Sample Market Traction
From the U.S. NAVY’s Military Sealift Command (MSC)
to the first Veterans Affairs (VA) Hospital + GSA Schedule
Market Traction: Government
www.IndependenceLED.com 12
PRIVATE SECTOR Energy Savings
Sample Market Traction
New
LED
vs.
Exi
stin
g
Market Traction: Corporate
www.IndependenceLED.com 13
Troffer Retrofit: Comparison
10 Years = $1,189.68
10 Years = $590.47
10 Years = $1,511.02
10 Years = $1,068.75 T5 Fluorescent
10 Years = $806.01 60W
44W
112W
140W
160W T12 Fluorescent
(with Ballast)
T8 Fluorescent
(with Ballast)
Avg. Overseas Manufactured LED Fixture
BEST
IN CLASS
The calculations assume comparable directional lumens, foot candles, or lux for 4 tube T8 (32W / tube + ballast factor) troffer as the existing installed default, and the U.S. average $.12 Cost / kWh. With Independence LED’s 10 Year Warranty at 60,000 hours of life, common scenarios for 6,000 hours of illumination per year include: Grocery Stores, Retail Stores, Warehouses, Distribution Centers, Call Centers, Data Centers and long run time/double shift Offices (16 hours / day). The Independence LED performance is even better for 24/7 operations and properties such as Convenience Stores, Hospitals, etc.)
Total Cost of Ownership