Ask the Energy Expert

Illuminating the bottom line for businesses: Is the investment in LEDs worth it?

I am often asked if the long-term savings outweigh the initial investment and how soon you can expect to see a return on your investment.

Since lighting can account for 25% or more of a business’ energy use, it’s an important topic for us to explore.

The quick answer: Light-emitting diode (LED) = return on investment (ROI).

Types of lighting fixtures:

1.  LED: Overall champion

• Lifespan: With an extended lifespan, LEDs outlast traditional incandescent bulbs.
• Energy bill hero: LEDs are the rulers of energy efficiency, converting most of their energy into light and reducing electricity bills.
• Wow-worthy light: Emitting light through tiny diodes, LEDs provide cool, directional light exactly where it's needed.

2. Fluorescent: Reliable workhorse

• Efficiency in balance: While they are not the most energy-efficient bulbs, fluorescents offer a solid balance between efficiency and upfront cost.
• T5 takes the crown: Look for T5 lamps within fluorescents for slimness and efficiency over older T8 tubes.
• Flicker-free: Modern electronic ballasts have eliminated the annoying flicker once associated with fluorescents.

3. High-intensity discharge (HID): Bright giant, with a catch

• Warehouse warrior: Ideal for vast spaces like warehouses, manufacturing facilities and more, HIDs emit intense light that can travel long distances.
• Efficiency trade-off: Despite their power, HIDs consume more energy than LEDs and have shorter lifespans.
• Warm-up time: Unlike instant-on LEDs, HIDs require time to reach full brightness.

Benefits to LEDs:

1. Use up to 75% less energy than traditional options.
2. Longer lifespan minimizes replacements and maintenance costs.
3. Rebates and incentives programs to offset the initial cost.

The payback period for LEDs depends on factors like energy costs, lighting use and fixture costs. Longer operating hours and use accelerate the payback process, plus replacing older fixtures maximizes savings.

Here’s the good news: you can upgrade to energy-saving lights for less! We offer rebates up to $20 for each qualifying fixture, and you might qualify for federal tax credits. Check your eligibility today.