LED Lighting Savings Calculations

Financials Of Lighting

Savings calculations example – long hand:

– Let’s consider a facility with an area of approximately 50,000 square feet, equivalent to the size of a football field.

– Typically, such a facility may have around 80 fluorescent light fixtures, each containing four 4-foot fluorescent T5 lamps.

– Each lamp in these fixtures consumes 54 watts of power, resulting in a total power consumption of 216 watts per fixture.

– When replacing these fluorescent fixtures with LED fixtures, the power consumption can be reduced to 90 watts per fixture.

– By making this switch, we can achieve a power reduction of 126 watts per fixture.

– Multiplying this difference by the number of fixtures (80), we obtain a total power reduction of 10,080 watts, or 10.08 kilowatts (KW).

– To convert the power reduction to kilowatt-hours (KWH), let’s assume the lights are operational for 5,000 hours per year due to running 2 shifts.

– Multiplying the power reduction (10.08 KW) by the operating hours (5,000), we find that the facility would save 50,400 KWH annually.

– Considering the average electricity cost for commercial buildings in the US, which is around $0.1319 per KWH, we can calculate the potential savings.

– Multiplying the total KWH savings (50,400) by the electricity cost ($0.1319), we estimate an annual savings of $6,647.76.

– If we consider the typical cost for new LED fixtures in a facility of this size, which amounts to $9,980, we can calculate the return on investment (ROI).

– The annual savings ($6,647.76) divided by the monthly savings ($553.98) results in an 18.02-month ROI.

– Over a 10-year period, assuming the LED fixtures last this long which they should, the total savings would be 10 times the annual savings ($6,647.76), amounting to $66,477.60. Subtracting the initial investment ($9,980), we find a net gain of $56,497.60 over 10 years.

– These calculations can serve as a useful reference for estimating potential savings when considering an LED conversion for your own facility.

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