Tuesday, July 27
Are you stuck in the 80’s with outdated lighting? According to the U. S. Department of Energy, only 20% of existing commercial buildings feature some degree of upgraded lighting technology, while 80% continue to operate lighting systems installed before 1986. Llighting represents 40% of the average commercial building’s electric bill, followed by motors/HVAC (40%) and other equipment (20%). The reason typically given for not upgrading lighting sooner is the initial cost of changing out an older lighting system and replacing it with a newer one.
For years, energy-efficient lighting solutions have been available that can reduce lighting energy costs while maintaining or potentially improving lighting quality. According to the Energy Cost Savings Council, energy-efficient lighting projects generate an average 45% return on investment, paying for themselves in just 2.2 years. And since the creation of the Energy Efficient Commercial Buildings Tax Deduction (EPAct), it makes the financial attractiveness of an investment in the most energy-efficient lighting and other building technologies well worth it.
Logan Clutch, a local manufacturing business had lighting that was stuck in the dark ages and they knew they needed to make the investment now to reap long-term energy and financial benefits. The retrofit:
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Will reduce energy costs by 49%
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Will save an estimated $10,668 per year on energy bills
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Will allow them to take advantage of the EPAct tax deduction that adds up to $15,000 for their 32,000 square foot facility
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Has an adjusted payback on the $28,000 loan to replace lighting was only 2.7 years
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Will save 91,518 lbs. of greenhouse gas emissions a year
For Logan Clutch, the retrofit was a matter of “putting common sense into common practice."
If you are not yet convinced that a lighting retrofit will improve your bottom line, here are five compelling reasons to consider a lighting upgrade:
1. Lighting upgrades are the number one energy conservation project;
2. Fluorescent lighting is far more energy efficient than the old, outdated metal halide or high pressure sodium that you typically see in stock rooms, warehouses, retail stores, offices;
3. Electricity savings from lighting upgrades are certain and quantifiable – up to 60% in many cases;
4. Lighting projects are cost-effective with short payback periods; and
5. Local utility companies will soon offer cash rebates for many lighting projects
Posted by:Nicole Stika