How to Save on Commercial Lighting Costs With LED Retrofits

Introduction

Switching to LED lighting is one of the most effective ways for businesses to reduce their energy costs. LED lighting uses up to 90% less energy than traditional incandescent and fluorescent lighting. By retrofitting your existing commercial lighting fixtures with LEDs, you can realize significant cost savings over the lifespan of the LED bulbs. In this article, I will provide an in-depth guide on how commercial enterprises can save on lighting costs through LED retrofits.

The Benefits of LED Lighting for Businesses

LED lighting offers numerous advantages over traditional lighting for commercial spaces:

Energy Efficiency

• LED bulbs convert over 90% of energy into light vs only 10-20% for incandescents. This drastic increase in efficiency leads to major energy and cost savings.

Long Lifespan

• LEDs can last up to 100,000 hours compared to just 1,000 hours for incandescents. This reduces the frequency and cost of bulb replacements.

Reduced Maintenance

• The long lifespans of LEDs lead to less maintenance. You won't need to frequently replace failed bulbs.

Better Light Quality

• LEDs produce a clear, bright light without flickering. The light output is very consistent over time.

Increased Safety

• LEDs run on low voltage and do not get hot. This removes the risks of burns and fires.

How to Determine if LED Retrofits Are Right for Your Business

Before undergoing an LED upgrade, you'll want to assess if it makes sense for your specific business. Here are some key factors to consider:

• Existing lighting infrastructure - Do you have older, inefficient lighting that is ripe for an upgrade? Assessing your current lighting will determine the potential for energy and cost savings.

• Electricity costs - Are electricity rates high in your area? Higher utility costs mean faster payback times on LED upgrades.

• Operating hours - Do you have long operating hours with lights on for much of the day? More operating hours mean more energy savings from LEDs.

• Incentive programs - Many utilities offer rebates and incentives for switching to LEDs which improves ROI. Check with your provider.

• Occupancy patterns - Irregular occupancy patterns can diminish potential savings. LEDs deliver the most value in consistently occupied spaces.

If electricity costs are high, operating hours long, and existing lighting inefficient, an LED retrofit likely makes excellent financial sense.

Calculating the ROI on an LED Retrofit

To determine the ROI on an LED upgrade, you'll want to calculate:

• Upfront costs - The cost of new LED fixtures and installation labor. Get multiple vendor quotes.

• Expected savings - The reduction in electricity costs and bulb replacement costs over time.

• Maintenance savings - Less frequent bulb replacements mean lower ongoing maintenance costs.

• Incentives & rebates - Don't forget state/utility incentives which improve the ROI.

• Simple payback period - The number of years required to recoup your initial investment through energy savings.

This LED Return on Investment Calculator makes it easy to determine your potential energy savings and payback period. Aim for a simple payback period of less than 3 years.

Finding the Right LED Products for a Retrofit

Choosing the right LED lighting is key to maximizing savings. Here are some things to look for:

• Efficiency - Select Energy Star certified LEDs which meet certain efficiency criteria. High-quality LEDs now exist for most commercial applications.

• Light quality - Ensure the light color, temperature, and CRI match your needs. LEDs provide excellent light quality.

• Warranty - Look for at least a 5 year manufacturer product warranty. LEDs typically have 50,000+ hour lifespans.

• Dimming - Ensure lights are dimmable if needed. Look for options compatible with your existing controls.

• Size & form - Choose LED tubes, lamps, and fixtures that directly replace what you currently have.

Purchasing through a reputable lighting distributor ensures suitability and provides technical guidance.

Key Steps to Implement an Effective LED Retrofit

Careful planning is required to successfully execute an LED lighting upgrade:

1. Audit Existing Lighting Infrastructure

• Conduct a lighting audit to document all existing lighting. Note hours of use, occupancy, and maintenance costs.

2. Design Retrofit Lighting Plan

• Work with vendors and designers to specify new LED fixtures and bulbs. Match light quality and aesthetics.

3. Calculate Expected Savings

• Use energy calculators to estimate reduced energy and maintenance costs. Account for available incentives.

4. Get Quotes and Select Vendor

• Get multiple vendor quotes for equipment and installation. Select most favorable bid.

5. Schedule Installation

• Schedule work during periods of low occupancy to minimize disruption.

6. Verify Desired Illumination

• Upon installation, verify appropriate and comfortable lighting levels. Tune as needed.

7. Measure and Track Savings

• Closely track energy usage over time and compare to projections. Monitor payback period.

With careful planning and execution, your organization can realize major cost savings, short payback periods, and improved lighting quality. The benefits will continue over the long lifespan of quality LED products.

Bringing It All Together: Real-World Example

Here is a real-world example of a commercial LED lighting retrofit:

ABC Hotels recently undertook an LED upgrade for their 150-room hotel in Dallas, TX. By replacing all incandescent and CFL lighting with LED lamps and fixtures, they will save an estimated $25,000 per year in energy costs. With installation costs of $80,000, incentives of $30,000, and additional savings from reduced bulb replacement expenses, the simple payback period is under 2.5 years. Given the long lifespan of the LED products, the hotel anticipates at least 10 years of energy savings from this retrofit. Guests have also provided positive feedback on the improved lighting quality in rooms and common areas. ABC Hotels is now exploring similar retrofits for their other properties.

Conclusion

Upgrading old, inefficient commercial lighting to LED represents one of the fastest ways for businesses to reduce their energy expenses and realize a short payback period on investment. LEDs also provide superior lighting quality for occupants. By following the recommendations in this guide for product selection, planning, and installation, facility managers can maximize savings and return on investment from an LED retrofit. The long working life of LEDs will deliver enduring savings year after year.