THE LIGHTER SIDE OF LED

January 12, 2012

Turn the lights out on incandescent costs and wasted energy.

By Adam Ritchie

The Energy Independence and Security Act of 2007, is phasing out incandescent light bulbs by 2014.

Evaluating Environmental Options

Considered the most environmentally-friendly option, LED lighting is 300 percent more energy-efficient than compact fluorescents and about 1,000 percent more efficient than incandescent bulbs, while using up to 90 percent less energy to run. Another environmental consideration is the mercury found in CFLs. LED lighting contains no harmful mercury and most LED products have lead-free solder in their circuit boards, which means there are no EPA-stringent rules or extra costs required for lamp disposal.

Bulbs and Bucks

While the environmental benefits are impressive, how do LEDs affect the business owner’s bottom line?

In order to understand the true energy and cost savings involved, an energy audit is typically required to compare the two bulbs in question.

Some businesses and restaurants currently use a standard Par 20 Halogen light bulb, for example. These 50-watt bulbs last approximately 2,500 hours and cost about $6 each. The LED replacement is the 9-watt Par 20 LED. If 10 Par 20 Halogen bulbs are used 10 hours a day, six days a week, 52 weeks a year (3,120 hours per year) in an office building, savings could reach $210.90 per year by switching to the 9w Par 20 LEDs. Furthermore, when using quality products, LED lighting will pay for itself in less than two years and the return on investment can easily be 12 to 15 times the cost of the product over its lifetime.

Local utility rebates and federal tax incentives also encourage consumers to consider energy efficient lighting. Rebates are available in many forms, including federal tax credits, city and community rebates, manufacturer’s rebates and utility rebates.

Kansas City Power & Light offers commercial and industrial energy efficiency rebate programs that include special incentives for energy efficient lighting in new or existing buildings. The rebate program is expected to end in Kansas within the year, but Missouri-based electric customers can still take advantage of these perks.

The American Recovery and Reinvestment Act of 2009 extended several consumer tax incentives originally introduced in the Energy Policy Act of 2005 (EPAct). The Interim Lighting Rule offers anywhere from 25 percent of savings for a $0.30 per square foot tax cut all the way to a maximum of 40 percent savings for a $0.60 per square foot tax cut for commercial buildings.

Quality of Light

Even with these cost savings, many consumers have been wary of transitioning to LEDs, because they feel the quality of light has not been comparable to that of incandescent or CFLs. However, the advancement of LED technology—even within the past year—has allowed manufacturers to create products that produce consistent color and high output lumen performance. Nearly every color temperature imaginable can now be matched, so there is little to no difference when switching to LEDs. The much-improved color rendering and other characteristics, such as instant startup and better lighting control (including the ability to dim), add to the continued adoption of LED lighting.

Adam Ritchie is a franchisee of LED Source, a provider of LED lighting that specializes in full-scale evaluations and retrofits in both commercial and residential properties. (785) 856-9533 // www.LEDSource.com

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