Switching to LED: Cost Savings Analysis

Have you ever wondered what would actually change if you switched to LED? You are probably too accustomed to the CFLs or tungsten lights you use right now, never done a long-term cost analysis and do not really imagine what kind of changes switching to LEDs will bring.

Let`s do a general cost analysis and compare the results of LEDs, CFLs and tungsten bulbs. I will take an electricity cost of 10 cents/KW and an average of 4 hours of light on per day, which means about 15000 hours of operating hours in ten years.

Let`s take the common tungsten lights first. If you have 10 incandescent bulbs in your small office, you will spend about $7.50 to purchase them and have an annual operating cost of approximately $84. Take into consideration that incandescent bulbs will be around for only 1000 hours (500 hours if you are lucky). There is also the additional cost generated by the fact that the air-conditioners will work harder to compensate for the heat emitted by the bulbs. Let`s see what happens in 10 years. In ten years, you will need to replace the light bulbs each year so in total you will spend $75 on the purchase and $840 on the bill, so $915 in total plus maintenance costs.

If you have 10 CFL`s in your small office you will spend about $110 to purchase them and have an annual operating cost of approximately $23. CFL`s will last for almost 10000 hours but they contain mercury and that could be a problem if you have people working for you and a hazard for the environment. If it is very cold or the lights are placed outside in the cold, they will need a couple of minutes to turn on and in some cases, they might not even work. Let`s see what happens in 10 years. In ten years, you will need to replace the light bulbs once and in total, you will spend $220 on the purchase and $230 on the bill so $450 in total plus considerable maintenance costs.

Now let`s see what happens if you have LED instead of CFL or Tungsten bulbs. If you have 10 LEDs in your small office you will spend about $390 to purchase them and have an annual operating cost of approximately $80. LEDs last will last for at least 50000 hours in any environment, whether is cold or warm, whether they suffer physical shocks or vibrations. Let`s see what happens in 10 years. In ten years you will not need to replace the LEDs and in total  you will spend $390 on the purchase and $80 on the bill, so $470 in total, but you will have no maintenance cost.

As you can see, it seems that incandescent bulbs are no option as they are the most expensive ones on the long term.

The first impression is that CFLs might be a little bit better than LEDs as the overall cost is a little bit lower (not counting maintenance costs).  The thing is that CFL will need another two or three replacements in the next years, while the LEDs will work just fine. In addition the maintenance cost will rise with the CFLs. CFLs are also a bio-hazard, they do not work always, take up a lot of space and give an unnatural light, so there are quite numerous advantages to LEDs when we compare them to CFLs so the slight disadvantage of LEDs in the first years can be easily ignored. Moreover, in 12 or 15 years the LEDs will prove to be more economical than all the other options.

Contact MyLEDLightingGuide.com by email or call at 1-888-423-3191 to make more exact and personalized calculations to see how much you can save if you switch to LEDs.

 

Alternatively, you can calculate your own Return on Investment outlook with MyLEDLightingGuide’s ROI tool.


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