Simple ROI Calculation For LED Lighting Systems

A bit of mathematics at the end of the week. The former blog topics handled the amount of money that can be saved by changing to LED light sources and how much more can be saved when changing to intelligent LED fixtures (called controls). Here is one example to show how fast Retrofit Solutions amortize and even the high investments into New Solutions pay back the money…


The first table shows three different installations. The old one is equipped with T8 fluorescent lamps that are at the end of their lifetime and dirty. That is why the luminous flux is so low for the 60W tube. In this situation, the need for a replacement is present. The choice is between a fluorescent tube, a LED tube or a completely new installation with controls. Controls reduce the average power consumption to 1/3 and less of the original load. We can estimate the new fixtures will consume 12W only when connected to controls that detect presence in the hall and reduce the lighting level in areas that are not in use. Each light point will be replaced. It is (often) possible to reduce the number of fixtures with a new installation. The example is concentrating on a one-by-one replacement to make it easier to understand.


The service life of the hall is estimated to be 15 years in total. The table shows how often each light source needs to be replaced over the whole service lifetime and which costs are connected to the maintenance cycles.


The table above shows the sum of all costs for running and maintaining the installation each year and in total. The Retrofit Solution reaches an ROI after 2 years already. The New Installation with controls is going to turn back the high investment after 10 years. Both LED solutions do better than the conventional one, save energy and CO2 emissions. Let’s go green with LED light sources!


Too much math and want a simpler way to calculate your ROI? Use our ROI calculator to determine your savings based on how many fixtures you have, past watt usage per fixture, and new watt usage per fixture. This tool allows you to see charts of potential savings which are easily saveable and shareable with your team.


Click Here to Use Our FREE LED ROI Calculator