SEEING THE BENEFITS
Lower Energy Costs
The amount you can save will vary based on several factors, including number of fixtures, hours of usage, and the level of lighting needed. For example, a 50,000 square foot commercial building spends roughly $45,000 a year on energy costs related to lighting each year. Imagine cutting that by up to 80%. What would that do to your bottom line?
Longer Product Life
Unlike traditional lighting, LED lights last up to six times longer than other types of lights, reducing the requirement for frequent replacements. Quality LEDs have an expected lifespan of 30,000–50,000 hours or even longer, depending on the quality of the lamp or fixture. A typical incandescent bulb lasts only about 1,000 hours; a comparable compact fluorescent lasts 8,000 to 10,000 hours.
LED lights contain no toxic elements. Most offices currently use fluorescent strip lights which contain noxious chemicals such as mercury. This will contaminate the environment when disposed of in landfill waste. Switching to LED avoids the cost and time implications required for compliant disposal and helps to protect the environment from further toxic waste.
LEDs come on at 100-percent brightness almost instantly. Most fluorescent and HID lamps require three minutes or more to reach maximum light output. Additionally, traditional light sources tend to have a shorter lifespan the more they’re switched on and off, whereas LEDs are unaffected by rapid cycling. Some LEDs also offer continuous dimming, as opposed to step-level dimming.
Payback and ROI
Knowing an LED fixture consumes less energy is one thing, but how much money will it save you and when will it pay for itself? Based on energy savings alone, most businesses see a significant reduction in their electric bill leading to a recoup in upfront cost within 2 to 3 years and a 46% return on their investment. Factoring in relamping and labor costs can increase the true ROI by up to 30%
The Energy Policy Act of 2005 includes a provision that lets taxpayers who lease or own a commercial building to obtain tax deductions if they install energy-efficient lighting systems, according to the SBA. To apply for these benefits on your taxes, you must have a professional verify that any installed equipment meets the requirements for energy efficiency.