1. What is Lighting-as-a-Service?

Lighting-as-a-Service (LaaS) is an innovative, new lighting delivery model that allows you to upgrade to high-efficiency, low-energy LED lighting without any capital investment. Prologis, as the LaaS provider, will upgrade your existing lighting fixtures, cover all associated costs and manage all aspects of the implementation. A portion of the money you save on reduced energy bills is applied as a LightSmart payment to Prologis. To give you full transparency on energy savings generated from the upgrade, Prologis will install circuit-level submeters that provide real-time data on your lighting usage. LaaS benefits include:

  • Immediate energy savings with no capital investment
  • Reduced operating and maintenance costs
  • Trackable savings monitored through our smart meter platform
  • Turnkey and expert implementation

2. Who is eligible for Prologis LightSmart?

We are offering the program to existing customers. While the lease term is not a constraint, please be aware that LightSmart will not make financial sense for all customers. Financial viability is dependent upon a number of factors, including:

  • Existing lighting and controls
  • Operating hours
  • Utility rate

3. What will be more economical for me in the long run, investing in and installing my own LED system or participating in Prologis LightSmart?

LightSmart is likely to be the more economical option, but you should also review your options and do your own assessment. Here’s why LightSmart is likely to be more economical:

  1. Flexibility: You only make LightSmart payments throughout the term of your lease. With other LaaS programmes, your obligation can extend for the full length of the lighting upgrade’s amortization period, regardless of your lease term.
  2. Resources and expertise: The LightSmart Team will provide you with a full-service upgrade, including all aspects of design and implementation. Many companies have neither the expertise nor the resources to complete an upgrade efficiently for maximum impact on their own.
  3. Investment: LaaS is not a capital project. No upfront investment is required.
  4. Time: Get your LightSmart upgrade now and experience immediate benefits.

The timing aspect is illustrated in this graph. If the payback of your investment in a new lighting system is longer than the remainder of your lease, LightSmart is likely to be a good option for you.

4. Will the LightSmart project be considered off-balance sheet under IFRS accounting rules?

The programme is designed to be off-balance, since Prologis is making the investment, but ultimately you need to consult with your accountant for a ruling on this matter. We can give you the following guidelines.

If this project is to be treated off-balance sheet, typically accountants will look at compliance to one of three criteria:

  1. Is it a dedicated asset (is it attached to the building)?
  2. Who's the beneficiary of the asset (the customer or the investor)?
  3. Who has control over the asset?

5. What lighting products will be used in LightSmart?

The LightSmart Team has sourced high-quality lighting fixtures from top tier manufacturers. We will work with you to determine which fixtures best meet your needs.

6. Can Prologis work with the vendors I have relationships with already?

Maybe. Prologis has partnered with E.on to implement LightSmart. E.on has a network of sub-contractors that meet the programme’s safety, quality, and scope of work requirements. However, in some cases, we may be able to work with your licensed electrician and other local sub-contractors.

7. Are there any upfront costs?

No. Prologis pays for materials, labour, lighting audits and any other costs associated with your LED upgrade, including metering to verify your savings.

8. Do I still have to pay my monthly utility bill?

Yes. You will still pay your monthly utility bill at your current energy rate, but it will be reduced due to the energy savings from LightSmart. In addition, you will pay Prologis for verified energy savings associated with your LED upgrade. Assuming no changes in rate or facility use, the total will be less than what you were paying before the upgrade—and you will have significantly improved lighting.

9. Who will send my LightSmart payment bill?


10. If I have a billing concern, who do I contact?

Your Prologis Property Manager will address any billing questions.

11. Will this programme impact my lease?

No. This programme does not impact the terms of your lease, although in some countries the LightSmart agreement will be executed via a lease amendment.  

12. How do I know how much I’ve saved?

The online energy dashboard gives you access to your energy usage and associated savings in real time. During the upgrade, we will install smart meters to monitor consumption for accurate annual savings tracking.

13. What is the typical service contract term? What happens at the end of the contract term?

The contract will be co-terminus with your lease. You only pay for lighting used over the remainder of your current lease term.

14. What does Prologis maintenance entail?

LightSmart provides a full system performance guarantee for five years. This guarantee—which Prologis is responsible for—includes parts replacement and any labor required for repairs. Note that LED lighting systems typically have very low failure rates. According to most manufacturers, failure rates are less than one percent per year. Historically, most LED defects show up within the first three to six months of installation; after this period, defect levels drop significantly. Within a 10-year plus lifespan, LEDs do not require significant ongoing maintenance. After five years, the tenant, or its maintenance company, will be responsible again for the maintenance of the LED lighting system.

15. What are the meters? What is the purpose of them? Does this go through my wi-fi? And are there potential risks—such as a cybersecurity risk?

The meters allow us to measure and validate energy consumption and savings, and to provide site-level usage data via an online dashboard. The metering system includes state-of-the-art security, technology and protocols—including data encryption and tunneling so data never transverses the public Internet—to ensure data is always protected. The system communicates through an independent connection with no need to connect to your IT infrastructure; this ensures that data transmission and storage are isolated from your enterprise network.

16. Who are the programme partners?

Prologis is partnering with E.on, an energy industry leader, to design and implement LightSmart.

17. Will the installation disrupt my business operation?

E.on has implemented hundreds of lighting upgrades at commercial facilities. We will work closely with you to schedule your installation to minimize the impact on your operations.

18. What if the LED lighting installed under LightSmart is insufficient or not bright enough for my needs?

Prior to signing the LightSmart agreement, we will walk you through a detailed lighting design. You will be able to evaluate and adjust the design—within the scope of Prologis’ specifications—to better meet your needs.