How to determine if it makes sense to convert to led

We all know you can save a lot of money converting to LED. Depending on the product you select, energy savings can be as high as 75%, even more with controls. But how do you decide whether replacing your lights with LED is worth it? Follow the 1+1+1 rule.

There are generally 2 reasons why you want to convert to LED.

  • you want to lower your utility bill
  • you want to reduce your maintenance on your lights and the cost associated with that

So if your main reason is to reduce your utility bill, then you need to look at the following rules to determine if the conversion makes sense

Step 1: How many hours do you run the lights?

This is important because if you are only running your lights an hour a day, or a few hours a week, then it may not make sense. If your lights are turned on 12 hours a night or 24 hours a day (production facility), then you should consider LED.

Step 2: What is you cost of electricity?

The cost of electricity varies across the country. We've seen rates as low as .05 kw/h and over .25 kw/h. And what your rate is, coupled with usage, can determine whether you can prolong your conversion to LED or should be thinking of doing it right now. Anything over .10 kw/h, and you should seriously consider converting to LED.

Step 3: Does your utility provide rebates?

In some locations, utilities give generous rebates to convert to LED. Since you are concerned with payback (the length of time the LED savings will pay back your investment), this can be dramatically reduced by the rebate provided by the utility company.

Putting it all together

Let's say you run a warehouse looking to covert to LED, containing 400W Metal Halide. These are on 12 hours a day, 5 days a week. You cost of electricity if .12 kw/h. Your utility will rebate you $60 per fixture to convert to LED. This is a perfect scenario for converting to LED. Hours of use is relatively high, as well as cost of electricity. Rebates per fixture is pretty good too! Payback can be under a year, depending on the fixture you choose.

However, if your cost is .05 hw/h, you run your lights 2 hours a day and you have no rebates, then there should be a better reason to convert because if you are hoping payback is what is going to

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