How to Reduce Your Business’s Electricity Costs With Smart Lighting Systems

How to Reduce Your Business's Electricity Costs With Smart Lighting Systems


Reducing electricity costs is an important way for businesses to save money. Lighting makes up a significant portion of a business's electricity usage, so upgrading to smart lighting systems can lead to major cost savings. In this article, I will provide an in-depth look at how smart lighting systems can reduce your business's electricity costs.

What Are Smart Lighting Systems?

Smart lighting systems refer to lighting setups that are automated and can be controlled remotely, often via a smartphone app or web interface. They involve installing LED lights, occupancy sensors, and daylight sensors.

Here are some key features of smart lighting systems:

How Do Smart Lighting Systems Reduce Electricity Costs?

There are several ways that smart lighting systems help cut electricity costs for businesses:

1. Reduce Wasted Electricity from Unoccupied Spaces

The occupancy sensors in smart lighting systems automatically turn lights off when a space becomes unoccupied. No more unnecessary lighting in empty rooms or offices! This can reduce lighting electricity usage by 30-70% in spaces with fluctuating occupancy.

2. Take Advantage of Natural Daylight

The daylight sensors in smart lighting systems track incoming natural light and automatically dim artificial lights when sufficient daylight is available. On sunny days, this can reduce the lighting electricity load by 20-40%.

3. Enable Scheduled Lighting and Centralized Control

Using the smart controls, building managers can set schedules to turn lights on and off. Lights can also be dimmed or turned off as needed from a central dashboard. This ensures lights are only on when needed, avoiding waste.

4. Transition to Efficient LED Lighting

As part of a smart lighting upgrade, switching to LED lights immediately cuts lighting electricity use by 50-70% compared to traditional bulbs. This generates huge energy savings.

5. Reduce Maintenance Costs

LED lights last 5-10 times longer than incandescent or fluorescent lighting. With smart lighting systems, failed lights can also be identified remotely. Together, these maintenance benefits lower costs.

Real-World Examples of Business Electricity Savings

Many businesses have already upgraded to smart lighting systems and seen substantial cost reductions. Here are some real-world examples:

How Do You Calculate the ROI on Smart Lighting?

When considering a smart lighting upgrade, it is important to calculate the return on investment (ROI). Here are the key factors to include in the ROI analysis:

Divide the total annual savings by the upfront costs to get the ROI time period. Most smart lighting systems pay for themselves within 2-3 years. The savings then continue providing returns over the 10+ year lifespan of the LED lights.

Top Tips for Maximizing Your Cost Savings

To maximize the cost savings from implementing smart lighting, keep these tips in mind:


Upgrading to intelligent, automated LED lighting systems can reduce a business's electricity costs significantly. The reduction comes from lower energy usage, efficient LEDs, reduced maintenance, and optimized lighting control. Smart lighting upgrades can pay for themselves in 2-3 years or less. By following the tips outlined here, you can maximize the cost savings and take advantage of the latest lighting technologies. The environment and your business's bottom line will benefit.