Massive Energy Savings With LED Lighting

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Why Choose LED?

Significant Energy Savings

LED technology can dramatically reduce the amount we spend on lighting across all industries. Whether you’re a home owner, work in a commercial office tower, or manage an industrial facility; early adopters of LEDs will reap the rewards.

For home owners, it would be safe to assume that most houses have swapped all their A19s (screw in bulbs) with LED by now. Just by doing this easy task, your going from 60W to 9W. If you had a CFL in there before, perhaps you went from 23W to 9W. Whatever the case may be, the fact is the wattage for each lamp has been reduced by a large factor.

Commercial buildings are huge energy consumers of energy. There are often literally thousands upon thousands on lamps that are constantly on. Underground parking lots are usually on 24/7! So then if it is a fact that commercial properties use massive amounts of energy to light the property, would it not make sense to reduce this amount by as much as possible? Most people are aware of LED lighting benefits, but don’t really understand the true cost of not upgrading to a more advanced and efficient system. Converting an entire commercial building to LED can literally save $10,000, $25,000, $50,000 per year on energy, depending on the size of the property.

Industrial factories are known to consume the most energy. Massive amounts of energy is required to power heavy machinery, welding equipment, cranes, hoists, heating and cooling, the list goes on. Depending on the scale of the facility and the operating hours (often 24 hours per day), significant savings can be attained.

Let us demonstrate our simple yet effective process to theoretically determine how much your property uses and can save on energy.

  1. To begin, we first need to collect data of the current lighting system that is installed at the property. We do a though walk through and count every single light fixture. Whether it be a single bulb or a 400W Metal Halide high bay. Everything is recorded including the wattage of each lamp, type, and of course operating hours.
  2. After recording the necessary lighting information, everything is entered into an excel spread sheet. The image below is our Energy Analysis Report. Here you are seeing the theoretical total energy consumption of the current lighting system compared with the difference with the LED equivalent. On average, projects reduce their energy consumption by 30-50%. The light grey box at the bottom right of the image is the most important, as it tells you how much to expect in annual energy savings.

We had a client ask how we came up with the 11 cents per kWh. So, we called EPCOR (their energy provider) and asked them right then and there. After including the extra fees associated with purchasing energy such as transmission, admin, rider, etc. The final amount the EPCOR representative said was 11 cents per kWh. This amount is a standard used to make energy efficiency analysis reports.

  1. Next, we have the savings on reduced maintenance page. The top blue box calculates the approximate amount of burnt out lamps that will need to be replaced for your current lighting system each year. Having completed many commercial retrofit projects, we have determined that a 20% lamp failure rate is close to accurate (CFL, Fluorescent, MH, HPS). The unit costs are based on bulk pricing from well known distributors of lighting products.

The second blue box is the costs associated with burnt out ballast and hard to reach fixtures. All fluorescent lamp fixtures require a ballast to operate. This just means another component that will fail after a certain amount time. When working with 120V, we usually recommend to installing lighting products that are self-ballasted or have an internal driver. For instance, our 4-foot LED tubes have an internal driver and work directly on 120V. They are rated for 50,000 hours of operating life, which translates to about 5.6 years (24/7). Compare that to a typical name brand 4-foot fluorescent lamp, which usually burn out around 20,000 hours or sooner. The lumen output is also significantly less as they start to decay. By its half life time, fluorescent lamps are only giving off 40-60% light output compared to when it was brand new. LEDs lumen output remains consistent throughout its life time. The main point that we want to make clear is, it is always the better choice to go with direct line 120V LED lamps for upgrade projects because when the lamps do eventually burn out, all you have to do is swap the lamp, and not have to change any ballast or external driver. Saving a lot of money because the lamp swap can be done on your own most times.

  1. The next green box combines all of the assumed savings on not having to replace anymore traditional lamps and the costs associated with hiring electricians in to replace burnt out ballasts. In this case, the annual savings is $1141.30. This amount is combined with the LED energy savings on the first page to calculate the Return on Investment (ROI). The total LED rebate amounts are also incorporated into the ROI formula.

Most projects have a pay back of about 2 years. We have done projects with 0.9 year returns and can be beyond 3 years as well, every project is different. What this means is, if your LED upgrade project has a ROI of 2 years, the energy savings from the LEDs and savings from maintenance fees will essentially pay for the entire project in that amount of time. The next 3 years (LED life span 5.6 years) is putting money back in your pocket, in this case $1141.30 + $4627.21 = $5768.51 in total savings per year. This of course is compared to IF the lights were not changed to LED over the time period.

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