The Money Saving Power of LED Lighting
At Power of Clean Energy, we believe that one of the most financially beneficial clean energy technologies is LED lighting.
According to the U.S. Department of Energy, lighting represents the largest source of electricity consumption in domestic commercial buildings: an estimated cost of $38 billion per year. At this point, virtually everyone is aware of the long-term cost savings associated with LED lighting. So, why is it that so many organizations have still not converted to LED technologies?
Perhaps it is due to a lack of information. Perhaps there are misconceptions about available LED technologies, or the details of how the ROI numbers really work. Whatever the reason, we want to provide insight on some common questions and misconceptions that we hear most often. Some of these may surprise you!
Aren’t LED lights really expensive?
Prices have decreased nearly 90% over the last 5 years in parallel with a doubling of both efficiency and output every 36 months.
LED light is so bright – and it’s blue!
The technology has advanced to the point that virtually any color and brightness combination is available.
Our business will just make the change when we are forced to do so.
The phase-out of fluorescent technology by the federal government and by manufacturers has already begun – and will accelerate. Incandescent bulbs are almost gone. Fluorescent tubes, metal halide bulbs and mercury vapor bulbs are next. Inventories of these older technologies will be depleted. Also, with the option to finance large lighting projects, most organizations are able to make these upgrades with little-to-no out-of-pocket costs. Financially, now truly is the time to make a move.
What is the return on the investment in lighting and HVAC controls?
Projects can range quite a bit, in terms of ROI, depending on your facility, what it is used for, upgrades you have already made, etc. Typical ROI’s range from 3-6 years, but we have also seen projects that pay for themselves in less than a year. With the ability to finance these projects over a 5-7 year stretch, PCE clients are able to use the energy savings to pay for the majority of their project. In fact, many of our clients are able to go beyond simply paying for the project with their savings, and they can actually start saving money monthly in their very first month, even after including their energy loan payment!
Don’t fear your utility bill. You can take control of your energy consumption costs, and we can help you make the right decisions at the right time for your organization.
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