There are many reasons that LED lighting upgrades are a simple and smart solution. LED lights last longer, they are cool to the touch, they encourage productivity, they save money over the long term and the upgrades a
re often incentivized by utilities making them an unbeatable investment.
Is LED affordable?
This year the global penetration of LED lighting should exceed 50%. That means after all of these years, we are still only halfway to our goal. Every year pricing seems to improve making LED lighting a very affordable option with a relatively fast payback.
There are various financing options to complete an LED retrofit including partnering with Energy Savings Companies (ESCOs), using Utility, Federal or State rebates or participating in a Lighting-as-a-service contract.
How much will I save?
That depends on what portion of your monthly utility bill is spent on lighting costs. The calculation is rather easy.
Let’s say you have a warehouse with 400 watt metal halide high bays and a new energy efficient LED high bay fixture will save about 60%. A new LED high bay fixture that uses only about 150 watts will provide the same amount of light as your existing 400 watt. The energy calculations are as follows:
Existing fixture: 400 watt metal halide that actually uses 458 watts (per hour) with the ballast and lamp combined.
New Fixture: 150 watt LED that uses 150 watts total.
Energy Savings per hour (kWh) = 458 – 150 = 308 total saved watts per hour or .308 kilowatt hours saved.
Energy Savings – Peak Demand (kW) = .308 kilowatts of demand or maximum power needed at any one time.
If you electricity rates are .10 cents per kWh and $13 per kW (demand) charged on your electric bill, your savings are as follows