5 Factors that can influence LED Lighting ROIs
The introduction of LED lights was no less than a revolution in the whole lighting industry. These cost and energy efficient lights have now become a dominant force in the market and almost replaced all the other traditional lighting solutions.
Since their introduction, LED lighting solutions and smart lighting controls have quickly emerged as a standard for commercial, industrial, and institutional lighting applications. Various researches claim that the market adoption of these lighting solutions has been on a considerable rise. Furthermore, they also leverage multiple benefits with respect to energy savings.
It is claimed that LED lighting in general illumination applications can reduce the total energy consumption by almost 50%. These statistics further strengthen the fact that LED lighting solutions are one of the most energy efficient lighting solutions that deliver long-terms benefits.
Since LED lights are designed for a longer life with low power consumption capabilities, they deliver a significantly high return on investment (ROI). However, this rate of ROI is influenced by various factors. Here are 5 vital factors that influence LED lighting’s return on investment:
Characteristics of lighting fixtures
The total number of lamps, wattage of lamps, along with ballast factors are some of the lighting system characteristics that impact the total kilowatt hour (kWh) consumption of lighting fixtures. Lighting up the place with extra lamps is expected to increase the total power consumption. Since LED’s are efficiently bright, they emit a considerable amount of light to illuminate the whole place. Thus, you should choose the number of lamps wisely.
Over the period of time, technology and sustainability have substantially modified the whole lighting industry. Many offices and workplaces are now implementing smart lighting solutions and controls as an initial step towards energy conversation. Nevertheless, if a workplace has placed intelligent controls like the occupancy sensors or other lighting control strategies, they should keep a record of it as this can influence the running time calculations and the rate of ROI further in time.
According to lighting experts, the cost of maintaining a fluorescent lighting system is substantially higher than LED lighting solutions. While a florescent lighting system requires replacement of electrical accessories from time-to-time, LED lights are designed for longevity. Thus, they don’t require frequent replacements which allows companies to considerably save on total maintenance costs.
Lighting rebates (incentives) and tax incentives can have dramatic impacts on the return on investment. These programs help in the calculation of ROI and provide businesses with an opportunity to save big on electricity bills. However, there are various other factors that can influence the calculation of ROI. Thus, it is important for companies to proactively gather data after considering all the factors in order to accurately calculate the ROI.