Posted by Jim Dore 
On Tue Mar 25By Jim Dore, Vice President of Service Solutions at Chateau Energy Solutions
If you’d have told me 30 years ago that over time, the business world would be thinking about lighting as part of a financial strategy, I would’ve agreed while others might’ve raised an eyebrow.
Those of us in the industry could spot the signals early.
Although I should add to that – today, the impact and range of how LED has supplanted itself in the overall business value chain continues to amaze me.
In 2025 I can say with confidence that LED lighting as a strategic asset is no longer the “nice to have” vanity project that early adopters implemented in the mid 1990’s. Now, I view LED technology as more of a “need to have” investment that brings substantial financial payback for Facility Managers and their organizations.
Please note my use of the word investment in the previous sentence.
Providing light to the operations that fuel our businesses isn’t a cost, it’s an investment, and investments require returns. Smart investments produce great returns, and great returns can tip the scales on how businesses keep pace, compete, and win in today’s marketplace.
In my many years of traveling to and working with Fortune 500 companies, healthcare networks, retailers, and industrial facilities, I’ve seen firsthand how the shift from traditional lighting to LED has transformed the way my customers and partners think about operational costs and environmental impact.
It pleases me to say that when you’re part of a solution that produces dividends inside an organization (as well as beyond its’ walls), it truly validates why you do what you do.
In this article, I’d like to break down why LED lighting isn’t just a cost-cutting measure – it’s a strategic upgrade that pays dividends for Facilities Managers and the companies they represent.
As I mentioned, smart investments produce great returns, and great returns need a comparison. Afterall, it always helps to understand where you might be now (State A), and what a more ideal state could look like, let’s call that, State B.
In my 11 years at Chateau Energy Solutions and 30+ years in the energy efficiency industry, I’ve had the opportunity to speak with hundreds of Facilities Managers across the country and beyond. One immutable truth I’ve learned from these conversations is that Facilities Managers are true experts when it comes to performance metrics, ongoing maintenance, and financial management.
For facilities that aren’t currently using LED (State B), the vast majority of them employ fluorescent or incandescent lighting, (State A). Starting with performance metrics, the case for LED is clear cut:
However, before even considering the effects of ongoing maintenance and financial management, savvy Facilities Managers understand that performance is just one piece of a more complex puzzle. Like any worthwhile investment expected to provide returns, ripple effects and chain reactions are inevitable, and those elements warrant consideration.
Whenever I have the chance to speak with companies considering LED, I always remind them that technology has a unique way of changing everything around it: the building itself, the owners and investors, the employees within, and the end users and buyers outside.
Technology, in its greatest and purest form can still be thought of as a neutral entity as it takes its place inside a business operation. Time in market and astute management work together with technology to determine the positive ROI that Facilities Managers seek.
To illuminate this point in greater detail, I’d like to shift gears a bit and focus on some previous and current work I’ve been involved in with one of my current customers, Encompass Health.
Encompass Health is the nation’s largest provider of inpatient rehabilitation.
With a national network of 150 hospitals, approximately one in three patients in the U.S. receiving inpatient rehabilitative care receive it at an Encompass Health hospital.
In 2019, Encompass Health began work with us to retrofit and upgrade their national interior and exterior lighting systems. As you might imagine, installing retrofits and upgrades in buildings where patient care and limited business interruptions were of utmost concern presented quite a challenge.
So far, the hard work of our experienced professional teams at Chateau Energy have resulted in 75 successful rollouts to date:
“We are confident that Chateau Energy’s expertise in energy efficiency and sustainability will provide Encompass Health with a variety of benefits such as increased energy savings, improved maintenance savings, enhanced aesthetics, and most importantly, elevated patient, visitor, and staff comfort in our facilities across the country.” – Josh Rhodes, Encompass, Director of Design and Construction
There are some things that are hard to assign an ROI to, but knowing that the work we are doing is helping to better the lives of patients and caretakers is extremely rewarding.
For Encompass Health, the decision to retrofit and upgrade to LED went beyond energy efficiency. It was more about implementing a long-term strategy for a critical hospital network that operates in 37 states and Puerto Rico.
Consider maintenance. Older bulbs constantly burn out, requiring staff to replace them –sometimes in hard-to-reach areas, which means downtime, higher labor costs, and periods of discomfort for employees and patients. LEDs drastically reduce the hassle. And for organizations like Encompass Health with multiple locations, savings scale fast. There’s also the modernization factor. In our ongoing work with Encompass Health, our team understands that upgraded lighting isn’t just about saving money –they wanted a fresher, cleaner look for their facilities.
Lighting impacts branding, customer perception, and even employee satisfaction.
Better visibility, improved productivity, and a more inviting atmosphere? That’s what LED delivers.
When completed, the energy savings and reduced GHG reduction will generate more than $2.3 million in estimated annual savings for Encompass Health. In addition to that, a part of the holistic service Chateau Energy provides includes uncovering utility rebates and subsidies for our clients. Our work here has resulted in an additional $510,000+ in avoided capital cost. An LED upgrade typically delivers a 2 to 4 year payback, with ongoing savings year after year.
Earlier when I wrote about how LED technology and energy savings continues to impact financial strategies for organization, this is part of what I was referencing. When facilities managers, business owners, and technology work well together – the end result is a streamlined financial strategy with optionality and greater investment power.
Smart investments produce great returns, and great returns can really move the needle.
And who doesn’t like that?
Light, in its various forms, has a universal way of starting our days and contributing to its quality. For instance, when I travel I always carry a small roll of electrical tape with me.
Why? I’m a light sleeper and I’ve found that even the smallest red and blue lights sometimes found in hotel rooms can make the difference between a good night’s sleep and a great one.
Covering them with tape provides a quick fix that helps me feel refreshed, well-rested, and ready for the business day ahead.
Granted, a national organization with expensive facilities and complex operations like Encompass Health isn’t quite the same thing (or even in the ballpark), but the overall goal has parallels: optimizing the use of something we need and rely on every day to create even better days ahead.
If you’re a Facilities Manager wondering whether LED is the right move for your business, here’s my advice:
Chateau Energy has provided a full-service approach to LED upgrades and other types of energy efficiency solutions for Facility Managers – ranging from Fortune 500 companies, healthcare facilities, industrial and manufacturing plants, distribution centers, educational institutions, and retail giants.
If you’d like to explore what LED solutions can do for your organization, I’d love to speak with you.
Vice President, Service Solutions
Mr. Dore is the Vice President of Service Solutions and leads the business development team at Chateau Energy Solutions. He has 30 years of experience in consulting, designing, selling, and funding energy efficiency and electric vehicle infrastructure projects and programs. Mr. Dore has been directly involved with more than $150 million in energy-efficient turn-key projects throughout his career. His experience, deep industry knowledge, and relationships keep him at the forefront of emerging energy technology and program funding solutions. Contact Mr. Dore on LinkedIn.
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