How to Save on Commercial Lighting Costs With LED Retrofits

How to Save on Commercial Lighting Costs With LED Retrofits


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

Long Lifespan

Reduced Maintenance

Better Light Quality

Increased Safety

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:

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:

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:

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

2. Design Retrofit Lighting Plan

3. Calculate Expected Savings

4. Get Quotes and Select Vendor

5. Schedule Installation

6. Verify Desired Illumination

7. Measure and Track Savings

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.


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.