Some organizations have the need for off balance sheet transactions either due to Bond/Debt Ratio Ratings, public companies that do not want to impact the per share price with a large operational capital expenditures to retrofit existing facilities or companies that have ongoing large capital equipment needs (ie. Healthcare, Manufacturing). These organizations would prefer to update their lighting to LED by using an off balance sheet approach. MHSC’s MLS program can do exactly this.
To accomplish this, the organization elects to “outsource” its lighting to MHSC. MHSC provides a turn-key retrofit for the organization and all the lighting is then owned by MHSC and a user license is provided to the organization. The organization signs a multi-year MLS use license agreement whereby all lighting is now owned and maintained by MHSC. The savings generated by the LED retrofit is used to pay for the license plus there is typically additional savings generated beyond the license fee (ie. maintenance savings as there are no longer any maintenance costs since all the lighting is owned and maintained by MHSC through the MLS agreement). Although the organization does not receive the full benefit of the savings created by the LED conversion, it does not have to use any capital dollars to receive that benefit, receives some savings over the course of the long term agreement and no longer is responsible for maintaining the lighting.
Many organizations employ full time maintenance personnel and in many of these organizations, some of these personnel change out lights bulbs 4-8 hours each day plus replace failed ballasts. By outsourcing this responsibility to MHSC, the organization no longer has this ongoing maintenance expense.
MHSC provides a turn-key retrofit for the organization and all the lighting is then owned by MHSC and a user license is provided to the organization.
Most organizations can save money by converting to LED lighting technology. This is a known fact as LED technology is much more efficient...READ MORE
One of the most critical factors in understanding an LED Retrofit are the choices that are made to replace the existing lighting within an...READ MORE
Most LED manufacturers maintain a 5-10 year warranty on their products. The best LED manufacturers will have less than a 1% failure rate...READ MORE
Electrical surge, in simple words, is a sudden spike in electricity in your electrical circuits. Even though surges in general can...READ MORE