LED Investment Case Study
100,000 Sq Ft Facility

Simple Payback Summary

INITIAL INVESTMENT
(Including Install Estimate):
$49,356

PAYBACK PERIOD:
1.47 Years

LED Lifespan:
7.92 Years

TOTAL SAVINGS OVER LED LIFESPAN:
$217,345


BASE UTILITY RATE
(National Ave):
$0.118

LIGHT OPERATION:
14 Hrs/Day, 355 Days/Yr

SAVINGS-TO-INVESTMENT RATIO:
4.39

ANNUAL SAVINGS:
$33,664

 
LED 100000K FACILITY case study savings-table image

LED 100000k FACILITY case study savings graph break-even image

1 Savings-to-Investment Ratio (SIR):
SIR is the ratio of savings achieved -to- the cost of an investment. A SIR of 1 or greater represents a prudent/profitable overall investment in energy efficient lighting. The higher the ratio, the more savings and profit will be realized from the investment.

2 Current Utility Rate:
Utility rate is an estimated state average until more detailed information is collected. Rate may include a 3.5% total increase over 10 year period (not compounded) applied to LED lifespan, in order to estimate modest increase in retail electricity costs based on historical data (Source: U.S. Energy Information Administration).

3 Annual Carbon Emissions:
Electricity sources emit 1.306 lbs of CO2 per kWh on average (Source: EPA’s eGRID emission factor)

4 LED Lifespan & Actual Usage Hours:
LED lifespan ranges by facility and product and is estimated based on light operation listed above.  More usage per day and year will decrease projected lifespan of lamp, while realizing a quicker payback period / break-even due to larger monthly energy savings.  Lifespan of lamp type is estimated based on manufacturer's specifications and ranges from 35,000 hours - 50,000 for LED lamps.


5 Cumulative Costs
Cumulative costs assume the estimated initial cost of fluorescents lamps and LED lamps, including estimated ballast replacement costs for fluorescents using a ballast (over the 35,000-50,000 hour lifespan on LED lamps).


 

Stateline Eco Electric Corp.
phone (541) 508-3098
eFAX (888) 988-6533


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