Projects  /  Vineyard Care Center
Case study · LED Lighting

Vineyard Care Center

NRG Incentives upgraded Vineyard Care Center in Reedley, CA to high-efficiency LED lighting — brighter, safer illumination across resident and care areas, financed through PG&E On-Bill Financing with zero capital out of pocket.

Vineyard Care CenterLED retrofit · skilled nursing
$35,830
annual energy savings
$2,985.82
monthly savings — matched to repayment
1.10 yrs
payback period
$0
out-of-pocket cost
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The challenge

Vineyard Care Center needed brighter, more reliable lighting across resident rooms, hallways, and common areas — a 24/7 care environment where outages and dim, aging fixtures affect safety. With AB 2208 driving fluorescent lamp shortages and rising maintenance costs, the facility needed a durable, long-term solution that wouldn't pull capital from operations.

The solution

NRG Incentives packaged a full LED retrofit and funded it through PG&E's On-Bill Financing program — so the upgrade moved forward with no capital allocation and no out-of-pocket cost, with monthly repayment matched to the energy savings.

"
We’ve used the same power-save program at every one of our facilities. Not only is there no out-of-pocket cost — we saw savings the very first month it was installed.
Benjamin Carter
Co-Founder, Jericho Care Group

The results

The retrofit delivers $35,829.86 in annual energy savings — about $2,985.82 a month — recovering the $44,244.79 project cost in roughly 1.10 yrs, then compounding into net savings while the new lighting keeps working. Crews and residents get even, glare-free light with far less maintenance strain.

Return on investment — net cash position over 10 years
Break-even 1.10 yrs
+$314,054
$300k$200k$100k$0
Yr 0Yr 2Yr 4Yr 6Yr 8Yr 10
Additional financial impact

What the upgrade is worth to the asset

Two of the levers an upgrade like this moves — value created and interest avoided. Adjust the rates to match your underwriting.

Added property value
$651,452$597,164$551,229$511,855$477,731$447,873
a one-time lift to the property's value at a 5.5%6%6.5%7%7.5%8% cap rate — capitalizing $35,830/yr in energy savings.
Cap rate
0% financing — interest you avoid
$3,540$3,982$4,336$4,424$4,867$5,309
in interest avoided each year at 8%9%9.8%10%11%12% — on the $44,245 project cost, financed at 0%.
Interest rate