LEDs Payback with more than just Energy Savings

Posted by Shelby Klick on Apr 20, 2017, 8:10:00 AM

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LED Lighting systems are known for their great energy savings but also for their larger upfront cost.  Just taking into account Energy Savings, the payback period for LED Lighting could be less than two years.  However, taking into consideration productivity, profits from efficiency, and low maintenance costs, the payback period for LEDs can really be a few short months. 

Increased Productivity

A LED Lighting System can be perfect for any work environment improving the productivity.  In general, lighting can affect a person’s mood, behavior, energy, and alertness.  LEDs produce a brighter, whiter light that does not glare but illuminates work space evenly unlike fluorescent lights.  By switching to a LED lighting system, this problem would be eliminated.  Statistics show an 8% increase in worker productivity after replacing incandescent, halogen or fluorescent lights with LEDs.  According to research from Cornell University, 24% of office workers listed lighting as the reason for loss of work due to eyestrain and discomfort. 

Overall, that is a 2% loss of productivity a year per employee caused by poor lighting. This loss of productivity equals about one week of paid vacation per employee!  By simply installing an LED lighting system, productivity and employee satisfaction will improve greatly.  By improving employee productivity by just 1% , a new lighting system could be paid for within a year. 

Hidden Savings

Generally, LEDs pay for themselves in energy savings within two years.  For some, this period may seem like a long time but this time period is only taking into account the energy savings.  A study from the University of Michigan found that increased productivity could pay off the LEDs within 5 months.

Another savings that is not taken into consideration when calculating payback is the savings on cooling costs.  Incandescent bulbs produce up to 90% heat.  Similarly, CFL bulbs waste up to 80% of their energy producing heat. 

LEDs produce almost no heat.  In well-designed LED lighting fixtures, heat removal is accomplished through carefully designed and engineered heat sinks that draw heat away from the LEDs and dissipate it into the air surrounding the fixture housing.   Without the extra heat, the costs of cooling off a building or factory floor will drop significantly. 

Low Maintenance and Long Lifetime

You wouldn’t spend a lot of money on something if you knew that you would have to replace it within a few years.  Luckily, LEDs have a lifespan of 100,000 hours, 20 times longer than other bulbs.  You can also save money by having to perform less maintenance on LEDs.  LEDs  can go 10 years or more without maintenance!  

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Topics: LED Lighting, Energy Savings

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