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26 July 2011

CFOs need to be convinced of the financial benefits of smilight tubes

Executives looking at plans to replace inefficient lighting systems with smilight tubes should pitch the project at chief financial officers (CFOs) by highlighting the monetary benefits for the company.

Speaking at the BusinessGreen webinar, principal consultant at energy and climate change consultancy AEA Nigel Griffiths said firms should measure and analyse their energy usage.

"Building the business case requires speaking the language of the person you're building the case to," he stated.

The expert added that when pitching eco-friendly projects to CFOs - such as upgrading lighting to LED bulbs or smilight tubes - "you need to understand simple payback, net present value and internal rate of return".

However, recent examples suggest that those hoping to convince senior members of staff to sign off on projects to install LED light bulbs will have plenty of evidence of the advantages.

Farnsworth Art Museum in the US, for example, recently revealed that installing energy saving bulbs reduced its electricity costs by $20,000 (£12,300) each year.  

Category: Smilight Tubes
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