Calculate the full return on investment for an LED lighting upgrade – including energy savings, maintenance savings, and utility rebates.
Please fill in current wattage, number of fixtures, and LED wattage.
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A retrofit replaces old lighting, such as fluorescent or metal halide, with LED. The return on investment depends on the cost of the new fixtures and installation, the energy saved, and savings in maintenance. The simple payback is the total cost divided by the annual savings, and a shorter payback means the project pays for itself sooner.
Energy savings come from the difference in wattage multiplied by the hours of use and the price of electricity. Replacing 100 metal halide fixtures of about 460 watts with 150 watt LED fixtures that run 4,000 hours a year saves about 124,000 kilowatt hours, which at 12 cents each is nearly 15,000 dollars a year. Maintenance savings add to this, since LEDs last much longer and need fewer lamp changes.
Include rebates and incentives from your utility, which can cut the cost a lot, and any savings from added controls such as dimming and sensors. Make sure the new lights give the right amount of light, since a retrofit should match the lumens needed and not just the wattage. Consider the cost of disposing of old lamps and ballasts, which may be regulated.