Cost-Benefit Analysis of LED Lighting Upgrades
Maybe you’re a little late to the commercial lighting upgrade party that’s been raging since last year’s incandescent light bulb ban. Maybe you’ve had more pressing tasks on your plate than figuring out lighting upgrades for your warehouse, retail store or office.
But now the time has come to face the inevitable: A company-wide commercial lighting audit.
Don’t panic – the light-obsessed experts at TCP Lighting are here to help!
We put together this guide to help you make smart decisions about commercial building lighting that will benefit your business today, tomorrow and far into the future.
Let’s start by revisiting the overall benefits of LED lighting upgrades. Then we’ll walk through how to do a cost-benefit analysis that will get your entire company on board, from your accounting team to your maintenance crew to the workers who depend on high-quality lighting to hit their benchmarks.
The Benefits of Upgrading to LED Lighting
Not sure how TCP lighting levels up your business? Here are the main points in favor of swapping out those old incandescents, halogens and fluorescents for newer LED light bulb and fixture options:
Higher Energy Efficiency
Sustainability is more than a buzzword – it’s a commitment to good corporate citizenship! One way to show your colleagues, clients and customers that you’re serious about doing your part for a cleaner environment is to explore eco-friendly and sustainable lighting solutions like LED light bulbs and fixtures.
Besides, commercial building lighting makes up about 30% of a company’s electricity bill on average– and switching to energy-efficient LEDs can bring that down to under 10%!
Improved Lighting Quality
Working under incandescent or fluorescent lights can be a challenge. Glare, excess blue light and flickering bulbs can cause headaches, eyestrain and other problems for employees in all settings.
Brighten up your workspace with LED lighting that supports clearer visibility, a more vibrant ambiance and better overall wellness. Improved functionality like flicker-free dimming and color temperature selectability allows for tailored illumination that supports worker morale and elevated productivity.
Reduced Maintenance Costs
Your maintenance crew likely spends a good chunk of time identifying and replacing burned-out incandescent and fluorescent bulbs throughout your facilities. Free them up to tackle more pressing jobs by upgrading to LED light bulbs that boast lifespans of up to 50,000 hours – meaning years will pass before they need to be replaced!
Plus, all TCP lighting options for commercial spaces exceed OSHA standards for workplace safety. That means they help you create a safe, comfortable work environment that decreases both downtime and risks of accidents, injuries and legal liabilities.
Conducting a Cost-Benefit Analysis
Now that the benefits of a commercial lighting upgrade are clear, let’s get down to the dollars and cents of it. A full-scale commercial lighting audit might seem daunting, but it’s the only way to see whether it’s worth it for your business to make the switch.
Focus on these four key elements for a cost-benefit analysis that leads to the smartest decision:
Current Energy Costs
Start by clarifying how much you’re currently investing in commercial lighting. Include costs for electricity, replacement bulb storage and the maintenance involved in tending to your facility’s lights. This is the baseline from which you’ll calculate the difference a commercial lighting upgrade will make for your bottom line.
Projected Energy Savings
Calculating projected energy savings gets a little tricky. Variables like usage hours and energy type (e.g., electric vs gas) can have an impact on your overall utility bills. But for a general idea of the energy you’ll save through LED lighting upgrades, use this formula:
(Old Lighting Wattage – LED Lighting Wattage)/Old Lighting Wattage x 100
Example:
60W incandescent – 10W LED = 50W/60W = 0.833
Multiply by 100 to get a percentage: Projected savings is 83%
Installation & Future Maintenance Savings
Consider all aspects of your lighting upgrades by figuring in the cost of installing LED lighting and the savings you’ll gain in the long term with less need for replacements and maintenance over time. If you’re generally happy with the layout of your facility’s lighting, options like TCP’s LED retrofit kits minimize both downtime and expense during installation by keeping your current fixtures in place.
Available Incentives
Upfront costs for bulk quantities of LED light bulbs might seem high. But LED lighting rebate programs can save you money by recouping some of that initial outlay. These incentives come from both utility companies and lighting distributors, so they tend to vary widely depending on your region, the specific lights you choose and the availability of time-restricted programs. TCP is happy to help you find rebates near you with our online rebate finder tool.
Long-Term Benefits of LED Lighting Upgrades
Use our online ROI calculator to get an idea of the timeline for seeing a solid return on your investment in high-quality LED light bulbs and light fixtures.
As you work out the cost-benefit analysis of a full-scale commercial lighting upgrade, keep in mind the long-term benefits of ditching those old energy-sucking lights. On top of the world-class personalized assistance you get from the customer service experts at TCP, you’ll enjoy:
- A smaller overall environmental footprint
- Lower electricity and HVAC bills
- Less need for routine maintenance
- Greater control over light color temperature & brightness
- Higher productivity & morale from better quality illumination
- Smarter management of light usage with motion sensor options
- Fast, easy installation with quick-install options & all-in-one retrofit kits
Discover the Future of Lighting With TCP LED Technology
Feeling more optimistic about upgrading your commercial building lighting? Ready to embrace a brighter future with TCP’s top-quality LED warehouse lighting, office lighting and retail lighting options? Get a quote on your upgrade project today – and we’ll help you start saving money, time and energy sooner than you’d think!
