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I
NSTALLING ENERGY
-
EFFICIENT LIGHTING
is one
of the most effective and efficient upgrades a facility can
implement to save time, money and energy as well as improve
overall productivity, sustainability, safety and security. As the
most efficient lighting solution available, light-emitting diode
(LED) lighting technology produces immediate and quantifiable
results from day one.
While some may question whether such a technology
investment will provide real savings and a quick ROI, the fact is
that switching to LED lighting can result in a payback of two
years or less. With technology that is typically warranted for five
years, and most often lasts 10 or more, it is no surprise that
making the switch to LED can deliver fast and significant ROI.
Qualities of LED Lighting Technology
• Long-life, energy-efficient lighting technology
• Significantly reduces maintenance
• Operates efficiently in extreme temperatures
• Clean technology that reduces carbon emissions
• No mercury or hazardous material
Superior Power Efficiency =
Lower Energy Costs
LED lighting consumes much less power than traditional
incandescent, metal halide or mercury vapor lights, with superior
energy efficiency that can slash energy consumption by as much
as 50% in virtually any application. In states where the energy rate
is quite high, such as in New Jersey, New York and other areas,
this energy savings can have a dramatic impact on bottom-line
performance.
For example, at Arkansas Rockline Industries, a major supplier
of private label wet wipe products to Walmart, a one-to-one
replacement of metal halide fixtures with LED high bay lighting
cut the operational and energy costs of the lights by some
$75,000 per year to just $25,000. And, because LED lights
produce much less heat, the facility also noted a 20-ton reduction
in its air-conditioning demand, further reducing energy costs.
A correctional facility in the state of Oregon reported a significant
drop in its energy consumption — to the tune of $140,000 in
annual savings — by converting to high-efficiency LED lighting.
Meanwhile, a building products provider in Connecticut shaved
more than $5,500 a year from its energy bill, thanks to LED lighting.
Longer Life Reduces Maintenance Costs
While often considered an unavoidable expenditure, the
actual dollars spent maintaining traditional lighting can be
substantial, whether using a maintenance department or an
outside electrical firm. Simple bulb changes often demand
the use of a scissor lift, a halt in production and other costly
inefficiencies. Equipment costs alone can easily double a
maintenance bill. In some applications, reaching the fixtures
to replace a lamp may be a significant hazard and require
massive effort.
LED fixtures eliminate these headaches and can bring the
cost of lighting maintenance down to virtually zero. With their
exceptionally long-life performance, the best LED systems today
can provide at least a decade of worry-free, high-quality lighting
that delivers significant savings.
Since switching to LED fixtures, a natural gas transmission and
treatment operator in Colorado has saved $4,800 a year in bulb
expenses alone, plus another $57,500 in labor, for a grand total
of more than $60,000 in annual direct maintenance savings. At
Rockline’s facility, the elimination of bulb changes has saved the
company at least $5,000 a year, not including the cost of lift
rental to reach the fixture mounting height.
The savings are also significant at power generation and
other facilities with towers or stacks, like the Mount Bethel PPL
generation facility in Bangor, PA. Here, the company saved about
$12,000 in maintenance costs by converting its six Xenon stack
beacon lights to LED beacons. And, because the LED products
will last much longer, the company also reduced its risk of costly
FAA fines levied as a result of burned-out bulbs.
Rebates and Incentives
In addition to the inherent energy and maintenance costs
realized by switching to LED, the U.S. Department of Energy
(DOE) has implemented various rebate and incentive programs
to significantly reduce the upfront cost of upgrades and shorten
payback periods. The amount of funding available has increased
in the last year, leaving facility managers with great opportunities
to move forward on projects, even when little capital is available.
LED lighting often falls under a custom rebate program depend-
ent on kWh saved annually, and ranges from 30%-100% of
investment cost provided back to the customer.
The building products manufacturer in Connecticut took
advantage of a $30,000 rebate from Connecticut Light &
Power that, combined with energy and maintenance savings,
generated a 1.5 year payback on its LED conversion. And,
Rockline garnered a $48,000 rebate from its power supplier,
American Electric Power’s Southwestern Electric Power
Company.
The Bottom Line
For its energy efficiency, maintenance savings and overall
lower total cost of ownership — not to mention attractive
rebates and incentives — LED technology has already been
recognized by the industrial lighting world as the undisputed
successor to antiquated conventional lighting systems. With
numerous products for a wide range of applications now
commercially available from a number of reputable manufacturers,
many companies worldwide have already started to realize the
benefits of LED technology and have become more proactive
in its adoption.
v
Michael Schratz is director of marketing and John Krauter
is vice president of finance, Dialight Corporation,
Farmingdale, N.J.
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