An LED Retrofit – Smart Economics

Do I replace every Light? The Answer: Maybe yes, maybe no.

Cost

Like a building every light has a has an operational cost.  When we calculate the cost of lighting there are only three components that matter.  They include:

  1. The electrical rate paid to the Utility
  2. The number of hours the light is on every year
  3. The Watts used by the light

Savings

While the rate we pay to the Utility is fixed (although increasing steadily)  any effort to reduce the Watts or Hours used by a light is within your control.  Extreme reductions in consumption can be achieved by deploying changes to reduce both of these components

Payback

At the light bulb Payback is simply the solution cost divided by the savings of the same solution.  This can be calculated for a town, building, room, or a lightbulb.  Armed with this information for every light we can identify and build a collection of lights that together yield extremely low Payback period.  In a building which has thousands of lights, we can realize extreme benefits with payback periods of less than 6 months.

Our Answer

For most buildings, it depends on the efficiency of the existing lights. However, an LED retrofit for your buildings can usually be optimized to create huge savings with cash requirements that are far less than those required by most proposals.

Our next post will help you understand the process we follow to decide which light bulbs should be retrofitted to minimize cost and maximize savings.

For additional help and insight follow the links to our Multifamily, Hospitality, or Senior Living pages.  There you will find additional help and answers to questions that are critical to making your project a complete success.

Originally Published at: http://www.managedgreen.com/blog/2016/2/are-you-exploring-an-led-retrofit