In the fiercely competitive self-storage industry, where operational efficiency and financial success are paramount, finding effective ways to reduce operating costs and maximize profitability is crucial. One often overlooked and underappreciated aspect of cost reduction lies within LED lighting upgrades. By embracing LED lighting for self storage units, owners and operators can address the immediate lighting needs of the facility while minimizing operating expenses long-term. This blog post will explore how LED lighting is pivotal in maximizing profitability, allowing owners and operators to attract new customers and stay ahead of the competition.
Understanding Self-Storage Operating Costs
Self-storage owners and operators know that keeping operating costs in check is crucial for long-term profitability. These costs cover running and maintaining the facility daily and can sabotage success if not adequately monitored. One significant component of operating costs in self-storage facilities is energy expenses, particularly lighting for storage units and HVAC systems.
Lighting is essential for providing a safe and well-lit environment inside and outside the facility, ensuring visibility for customers and staff. However, inefficient legacy lighting systems can lead to significant energy consumption and inflated utility bills. Energy-efficient LED lighting for self storage units, in contrast, uses up to 75% less energy than traditional lighting. Furthermore, LED lighting has a significantly longer lifetime, reducing the need for frequent replacements of incandescent or fluorescent bulbs thereby decreasing maintenance expenses. As a result, self-storage facilities can substantially impact their energy expenses with ultra-long-life LED lighting upgrades, realizing immediate monthly savings.
HVAC systems are crucial in maintaining optimal temperature and air quality within the facility. Inefficient HVAC equipment or controls leads to excessive energy consumption and high utility costs. HVAC optimization upgrades help buildings to run more efficiently prolonging the life of the equipment. Operational efficiency solutions improve occupant comfort and save energy by balancing demand.
Owners and operators must address rising energy expenses and minimize maintenance costs to maximize profitability. Self-storage facilities can achieve this by implementing operational efficiency solutions, resulting in immediate monthly energy savings. These savings can be used to offset the costs of efficiency projects or allocated to other areas of the business, such as marketing or facility improvements. Facilities can improve their financial stability and resilience by implementing additional cost-reduction strategies, ensuring a long-term competitive advantage in the market.
Financial Advantages Beyond Energy Savings
LED lighting stands out for its exceptional efficiency compared to traditional self storage facility lighting technologies but goes beyond energy cost savings to provide additional financial advantages for self-storage facilities.
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Environmentally Friendly: Environmental concerns are a priority for all businesses and LED lighting can benefit ecologically as well as economically. Unlike traditional fluorescent lamps, which contain hazardous materials like mercury that can contaminate landfills and public areas, LED lights are safer to handle and dispose of. In fact, the US Environmental Protection Agency warns that mercury exposure can cause serious health problems, including memory loss and difficulty moving. LED lighting greatly reduces maintenance issues, saving the cost and potential contamination from disposal and recycling recurring bulb replacements.
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Incentives and Rebates: Many utility companies offer substantial rebates and incentives to organizations that upgrade their outdated lighting systems to energy-efficient LED lighting technology. These energy efficiency programs help to manage overall demand to meet energy savings goals and are more cost-effective than constructing new power plants. The recent expansion of the Section 179D Energy Efficient Commercial Buildings Tax Deduction now allows building owners to claim up to $5.00/sq. ft. for qualifying systems associated with energy-efficiency improvements, such as interior lighting and HVAC systems. Self-storage facilities are eligible for these programs, which help offset significant portions of project costs.
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Improved Operational Efficiency: Self-storage facilities can boost efficiency by installing fully programmable systems connected to LED lighting. These solutions can help lower operating expenses by allowing advanced lighting controls to adjust the lighting in specific areas when occupants are detected through various sensors. Additionally, energy management systems can control assets across a portfolio of properties using a single interface, enabling management to make remote adjustments. By balancing lighting and HVAC usage, owners and operators can collect essential data on facility performance giving decisionmakers the information they need to maximize energy reduction and cost savings.
The Section 179D Energy Efficient Commercial Buildings Tax Deduction allows building owners to claim up to $5.00/sq. ft. for qualifying systems associated with energy-efficiency improvements, such as interior lighting and HVAC. US LED partners with self-storage owners and operators to fully take advantage of the deduction and offset efficiency project costs.
Implementation Strategies For Self-Storage Facilities
When self-storage organizations are ready to implement LED lighting into one or more facilities, how can they maximize their return on investment? Owners and operators can work with an experienced lighting provider that understands how to maximize total portfolio-level operational efficiencies and develop a holistic approach to a successful conversion. Some critical activities to consider:
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Professional On-Site Lighting Audit: An experienced storage unit lighting expert will assess every area of the lighting system to produce an investment-grade report. A lighting audit will cover everything from current technologies and fixture layouts to existing lighting levels, service panel locations, and other relevant electrical and lighting details.
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Project Solutioning: After a self storage lighting audit, a lighting provider will analyze the information gathered to develop a lighting plan that meets the desired outcomes. This plan aims to achieve the recommended light levels for self-storage facilities per IES standards. A qualified lighting provider should also be able to create photometric layouts (or lighting layouts) to simulate the lighting design and help visualize the project's lighting improvements before installation.
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ROI Analysis & Rebate Management: The ROI report offers a comprehensive breakdown of the benefits of installing new LED lighting, including energy savings, project payback, cost of waiting, and environmental impact. It also provides information on applicable utility rebates and energy efficiency tax deductions that can help finance the project. Additionally, the report can evaluate the full portfolio for organizations with multiple properties to identify locations with the highest rebates with faster paybacks.
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Turnkey Installation: To obtain the greatest benefit with the least effort, it is crucial to have skilled and certified technicians to handle turnkey installation of your LED lighting upgrade and operational efficiency solutions. Using a company experienced in accomplishing these conversions reduces the need for facility personnel involvement.
Switching to LED self storage lighting greatly benefits facilities by reducing operating costs, increasing profitability, and enhancing overall operational efficiency. If you want to unlock the full financial potential of your facility, partnering with US LED is the perfect solution. Our team of self-storage lighting experts will guide you through the process and help you maintain a competitive edge in the industry. Take the first step towards a brighter future today by contacting US LED for an initial assessment.
