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Page 12 — Health Care Properties Quarterly — January 2017
Sustainability
A ll joking aside, this is a really
important question.With
the drive to improve patient
experience for both attrac-
tion and retention, a push to
embrace advanced technologies and a
move to modernization in health care
properties, I invite you to consider
what it takes to change the lights
in your facility to LED. And, more
importantly, recognize the reasons
that 2017 is the time to do it. I’d like
to believe the answer to the proposed
question is just one.When you do the
math on this limited time opportu-
nity, it really does sell itself.
As a lighting and sustainability pro-
fessional, I have been involved with
starting rebate programs across the
country and helped write the guide-
lines for the Energy Policy Act of 2005.
Based on my experience, I believe LED
is the healthy choice for health care
facilities. In many ways, I see all of
the benefits of LED amplified in the
health care environment. Improved
consistency and lighting quality
makes for a safer, more comfort-
ing and capable work environment.
This is true for patients, doctors and
visitors. Lower energy and mainte-
nance cost benefits the owners and
occupants’ bottom line. This is on top
of all of the utility demand manage-
ment, reduction of carbon emissions
and extended life LEDs. This has a
positive effect on profitability, the
environment and helps to significant-
ly reduce monthly energy costs.
I have been completing large proj-
ects on a citywide and nationwide
scope for municipalities and com-
mercial entities for 15 years. As such,
I have overseen many successful
retrofitting and
new construction
projects using LED.
One of the com-
panies I represent,
Bravo Lighting, was
responsible for part
of the LED light-
ing upgrades at
Children’s Hospital
Colorado in Aurora.
As a Colorado dis-
tributor that focuses
on LED lighting,
we were pleased to
see a resulting sav-
ing of 70 percent
on energy, a three
times extended
lamp life, improved lighting levels,
improved lighting quality, reduced
maintenance and the financial ben-
efits garnered from utility rebates and
tax certifications. For this project, and
many others, Bravo Lighting, in part,
utilized enviro-glo LEDs, a specialized
LED brand that maximizes efficiency
and quality while remaining one of
the most cost-effective LED retrofits
available.
Additionally Green Efficiency Solu-
tions helped maximize the value of
the Xcel Energy utility rebate to offset
upfront cost and certified an Energy
Policy Act accelerated depreciation to
speed up payback time. The resulting
return on investment is much better
than one would expect to see from
investment packages from anyone.
The continued energy savings and
maintenance savings often create
returns on investment of 12 to 30
percent-plus annually.
Many hospitals and health care
facilities have recognized these
obvious benefits and have already
upgraded to LED. The largest group
that has not made the switch is ten-
ants and landlords dealing with triple
net leases. In the case of a triple net
lease, all the costs of utilities, main-
tenance and operating the space are
passed on to the tenant. The savings
are not gained by the owner, so they
opt out of the cost to upgrade. Since
the tenants don’t own the property,
they may chose not to invest in the
location.
In the triple net space, the incen-
tive can make the difference.With
rebates and tax benefits combined,
large percentages, sometimes over
100 percent of the total cost, can be
covered. The tenant may want to pay
for the remaining costs to complete
the upgrade if the payback period is
faster than the terms of the lease.
There are also finance programs such
as performance contracts, leases
and Commercial Property Assessed
Clean Energy. C-PACE is available in
certain areas, such as Denver, which
can help offset upfront costs and the
loan repayment is tied to the property
taxes for the building, rather than to
an individual or business, and can be
paid back over 20 years.
Trey Littell
National director
of sales, Bravo
Lighting, Lafayette.
He also is the
owner of Green
Efficiency Solutions
and Efficiency
Electric.
A look at Children’s Hospital Colorado, where a 70 percent on energy savings occurred
with the switch to LED.