Much of the savings stems from the improved energy efficiency of LED lighting; up to 70 percent less energy is required to produce light. An added benefit is reducing heat generated, which saves on air conditioning and is noticeable in an operating room, office or data center.
Adding to the cost benefits, LED manufacturers promise an exceptionally long life of 10, 15 or more years. Shifting from disposable to durable lighting eliminates the maintenance costs such as tube and ballast replacement that are standard with fluorescents. Adding to replacement costs is proper disposal of the mercury-based fluorescent tubes.
The Pittsburgh International Airport found the ROI compelling. The airport is installing more than a thousand LED fixtures to cover over a million square feet in its garage (pictured below) and passenger loading and unloading area. The project is believed to be largest single installation of LEDs to date.
“Not only does the LED technology reduce our energy costs, it also reduces maintenance,” said JoAnn Jenny, director of communications for Allegheny County Airport Authority.
To further improve ROI, there may be grants and incentives available. Pittsburgh International Airport is taking advantage of a state grant to subsidize installation of LED lighting. With the grant, the pay-back period is cut by half.
Barriers to Adoption
Although LED fixtures offer compelling advantages, there are barriers to adoption. Kim Parsley, a principal for IA Interior Architects, which focuses on sustainable commercial building design, commented, “We are still recommending T5 fluorescents for office and retail spaces. We are cautious about the claims of LED lighting providers and want more case studies. The upfront costs are also off-putting to clients.”
To overcome these early adopter risks, Pittsburgh International Airport first completed a small pilot and then negotiated guarantees from its vendor that the LED fixtures would achieve the advertised light output, efficiency and life expectancy.
LEDs are starting to light standard commercial installations such as offices and retail. Last year, Unilever’s new 400,000-square-foot headquarters (pictured above) used LEDs as primary electric light source. Starbucks also announced last year its plan to retrofit all of its 8,000 company owned stores with LED fixtures and is on-track to roll-out by the end of this year.
Costs are expected to decline with continued improvement in performance. Sandia National Laboratories completed a LED study in 2001 [PDF] to develop a price / performance model. In that taper, Drennen, Haitz and Tsao described LED improvements over the previous thirty years, “In a Moore’s-law-like fashion, [light] per unit has been increasing 30x per decade … Similarly, the cost per unit … has been decreasing 10x per decade.” Improvements in this decade have been consistent with the model.
Implementation Considerations
The most favorable ROIs are for those applications where the lighting is expensive to operate:
- Energy intensive — Where there is long hours of operation, inefficient technology such as incandescent, halides, or halogens. These applications include garages, hospitals, retail, airports and other transportation hubs, decorative lighting, signage, elevator and restaurants.
- Costly maintenance — Frequent replacement required. Expensive to replace parts when using traditional fixtures. Examples are signage or outdoor lights.
Even when the ROI satisfies the company’s hurdle rates, other complications may limit the realization of benefits. Since many commercial buildings are leased, if the installation pay-back period is longer than the lease or the tenant does not pay for electricity used, then the tenant has no incentive to make the investment. In these types of scenarios, the tenant and landlord need to negotiate to determine an equitable way to share the costs and benefits of an LED installation.
Next Page: Key considerations when selecting LED providers.
When selecting LED providers, the Department of Energy (DOE) has established a certification program to test and compare various LED products. Since technology advances continue, DOE and other industry groups should be checked periodically for latest insights.
No matter the lighting technology selected, the first step is to reduce the lighting required and then find the most efficient technology for the remainder. Incorporating day lighting reduces the need for artificial lights. Presence detectors and automatic dimming to maintain correct level of light will eliminate waste.
LEDs Ready for Expansion
The newest use for LEDs, developed by NASA, is to provide light to grow plants for oxygen and food in space. The research from this space application has been transferred to medical uses in the treatment of cancers (see picture, right).
The nonprofit Light Up the World Foundation is developing and distributing solar LED lighting to poor people in remote areas who still rely on kerosene lamps and wood fires. This old style lighting creates toxic emissions that debilitate the health of those exposed; especially vulnerable are the young and chronically ill. The new LED light is appreciated for its bright illumination as well as its clean and frugal operation.
The quest to provide artificial light has always been about discovering more efficient and safer lighting technology. LED lighting is the next step in that evolution. LEDs have already expanded from niche lighting to standard commercial applications in the last few years. And LED technology is helping to open new frontiers because of its low energy requirements and ability to mimic sunlight.