It’s simple math and easily backed up by facts.
Let’s look at a typical business with a large number of lights and high energy cost.
Let’s assume “Miami Charter School” has 1000 T-12 fixtures with 4 T-12 lamps in each of these fixtures. They currently spend $66,000 in lighting energy costs each year. We know this since we know the wattage of their lights so we can get very close to exact lighting cost.
If they upgrade those fixtures to our T5 adapters they would need to purchase 2000 T5 adapters at a total cost of $85,000 for product and labor. Their energy costs for lighting after the retrofit would decrease to approximately $22,500. This amounts to a savings of about $43,500 annually or $3625 monthly. If they were to pay for the lights up front, their payback period would be 1.7 years. After this point they would begin to realize the $43,500 yearly savings.
Miami Charter School may want to conserve capital so they have the option to lease the new LED lighting system. The financing options include 3,4,or 5 year plans. If they choose to pay off the lighting with the 3 year plan, their monthly payments would be $2386 a month. Since they begin saving $3625 a month in energy costs after the retrofit, they will immediately start realizing an additional $1239 a month. After 3 years, they will realize the full $3625 savings a month.
It’s worth exploring how to reduce operating cost, it sometimes surprises how many people don’t know the benefits and fast payback period (ROI) for switching to LEDs.
We hope my education on our new Blog more and more business owners will look towards LEDs as a way to reduce energy cost. It’s also way to reduce the carbon footprint and help keep the earth a healthier environment.