opinion3 min read

PFI streetlighting contracts are ending – Why now’s the time to plan beyond PFI

Private Finance Initiatives (PFIs) have funded public infrastructure, including streetlighting, across the UK for over 25 years. These long-term contracts between local authorities and private companies typically last 25–30 years and are now reaching their expiry phase. As almost half of the UK’s streetlighting PFIs are due to end in the next decade, councils are being urged to start planning. But amid the rush to review ownership models and service delivery, one vital question often gets missed:

What condition is your LED lighting stock in – especially your earliest installations?

First in, first due for an upgrade

Between 2009 and 2012, many councils led the transition to LED streetlighting – long before it became standard. These early adopters played a key role in proving the benefits of LED technology. But now, over a decade on, the very fixtures that once led the charge are falling behind.

Back then, the average luminaire efficacy was around 100–120 lm/W. Today, newer models deliver well over 200 lm/W. That’s a potential 35%+ energy saving, with the added benefits of improved optics, programmable dimming, and longer-lasting performance.

Many first-generation LED units are now:

  • Out of warranty
  • Showing visible signs of wear
  • No longer delivering optimum output

Yet too often, they’re assumed to be “fit and forget.” In reality, they could be holding back your energy savings — or worse, creating costly risks ahead of PFI expiry.

PFI expiry: More than a paper exercise

This month’s Lighting Journal article, “Getting Ready for PFI Expiry”, urges local authorities to start planning for PFI hand back years in advance (7 is the ideal). The article highlights the need for clear governance, asset condition checks, and early decision-making around future service delivery.

And while it focuses on legal and operational readiness, it also raises a vital point: You can’t plan your future if you don’t understand what you have now.

With many streetlighting PFIs running for 25+ years, your earliest LED stock may be nearing the end of its useful life. That means some lanterns could fail compliance checks or require urgent replacement – just when your resources are stretched managing the wider expiry process.

What we’re seeing on the ground

At Acrospire, we’re here to help local authorities prepare for the road ahead. And not just on paper — we’re out in the field, reviewing assets and helping councils unlock extra value from what they already have.

This includes:

  • Asset audits to identify ageing or underperforming LEDs
  • On-site surveys to assess condition and compliance
  • Support with changes to CCT strategy (colour temperature no longer has a significant impact on lumen output and therefore energy savings, so we’re seeing many LAs switch from 4000K to 3000K and lower )
  • Retrofit gear trays for lanterns with sound housing but outdated LEDs
  • Lighting design support to improve energy savings and spacing using current standards (BS 5489, ILP GN22)

Even small changes can add up to big wins – especially when your lighting scheme covers thousands of columns.

Next steps: Plan smart, not just soon

PFI expiry represents a rare opportunity to re-evaluate your lighting stock, maximise efficiency, and prepare for the next generation of streetlighting. Whether you’re looking to bring services in-house or go out to procurement, it pays to act early – before exit deadlines creep up.

We’re here to help you:

  • Extend the life of good-quality assets
  • Identify outdated stock before it becomes a liability
  • Explore funding opportunities – for example, The Mayor of London’s Energy Efficiency Fund (MEEF) – a £500m investment fund to deliver low-carbon, sustainable projects
  • Prepare a smooth, value-driven strategy for post-PFI lighting
Let’s talk. Get in touch to book a lighting review or asset audit. We’ll make sure your LED stock is ready for the next step.