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Energy Savings through LED Lighting [Free Template]

Energy Savings from LED Lighting

Recently there has been a lot of buzz regarding retrofitting existing light fixtures, energy efficient products, and cost savings through your energy bill. What do all of these things have in common? They can all be found within the LED fixtures that are being installed in every application - warehouses, manufacturing plants, refrigerated facilities, office buildings, and so many more.

While talking with our customers, we like to stress the energy savings that you will experience through LED lighting. With energy-efficient product initiatives, facilities all throughout the region are not only saving money on their energy bill but are also receiving rebates as well. Calculating your savings when switching from obsolete light fixtures to new, innovative LED fixtures is very simple.

To Determine Your Energy Savings, You'll Need to Know These Simple List of Items:

  • Details on your existing fixture and New fixture, specifically:
    • the wattage of each
    • the price of each
    • the lifetime of each in hours
  • Energy Rate ($/kWh)
  • Operation Information
    • Hours of operation per day
    • Days of use per week
    • Week of use per year
  • The number of fixtures you want to replace

Below is a sample calculation:

Scope of project:

  • Existing fixture: 460 watt Metal Halide
    • Life: 20,000 hours/fixture
    • Price: $100
  • Retrofit fixture: 220 watt LED
    • Life: 50,000 hours/fixture
    • Price: $250
  • Quantity: 150 fixtures
  • Annual hours of operation: 8,736 hours (24/7)
  • Cost of kWh: $.075


Total Energy Cost Savings per Year

For this project, the annual energy cost savings will be $23,587.20.

  • Annual Savings = Gross Savings from all Replacements - Investment in Replacement Fixtures

Lifetime Energy Cost Savings

For this project, the total lifetime of energy cost savings will be $135,000. 

  • Lifetime Energy Cost Savings = Life Expectancy of the New Fixture / the Total Hours per Usage in One Year X  the Total Energy Cost Savings per Year

For this project, the time it would take you to save as much money as you initially invested or your "break-even point," would be about 16 months and your Return on Investment is 429%

It is important to look not only at your annual savings, but your savings over a 10 year period (the projected life of an average LED running 24/7). LED lighting is truly a long term investment that will pay for itself and companies will continue to reap the benefits of the total cost of ownership!

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