Lighting Upgrades: Influx of Incentives
Part 1: Lighting Upgrades: Opportunities in Existing Buildings
Part 2: Lighting Retrofits: Commercial Buildings Tax Deduction Provides Incentives
Part 3: Managers Can Deduct Full Cost of New Lighting with Interim Lighting Rule
Part 4: Lighting Upgrades: Strategies to Meet ASHRAE 90.1-2001
Lighting Upgrades: Opportunities in Existing Buildings
By Craig DiLouie - August 2009
Energy-efficient lighting generally is considered the easiest, most profitable investment compared to other energy-saving building systems. Lighting upgrades in commercial and institutional facilities generate an average project payback period of a little more than two years, with a 45 percent return on investment, according to the Energy Cost Savings Council.
One way to reduce the cost of operating an older lighting system is to replace it with a newer, more-efficient system. Another way is to upgrade existing, obsolete lighting systems with energy-efficient lamps, ballasts, fixtures and controls — staples in new buildings because of energy codes. Both strategies are designed to help maintenance and engineering managers lower energy use and save on utility costs.
With these benefits in mind, managers are taking on lighting retrofits, specifying controls and learning about tax incentives related to upgrades.
Existing Opportunities
About 2.5 million buildings, representing 60 percent of the U.S. commercial building stock, were built before 1980. Of these, about 1 million have benefited from a renovation. But only 18 percent have undergone lighting renovations, which suggests 25 billion square feet of floor space still features lighting that meets pre-1980 standards and uses the least-efficient lighting systems the law allows. These buildings represent today’s best candidates for lighting upgrades.
If energy-efficient lighting has proven to be reliable, widely available, and able to increase profitability through cost reduction, why is it more common in new construction than existing buildings?
The most common reason is the high initial cost of changing out an older lighting system and replacing it with a newer one. But this can be a short-sighted approach when considering the cost of forgoing an upgrade.
For example, the average retail price of electricity for commercial buildings jumped from $0.074 per kilowatt hour (kWh) in 2000 to $0.1025 kWh in 2008 — almost a 40 percent increase. If a lighting system costs $10,000 to operate each year and a modest upgrade could reduce this to $7,500, then over four years, the organization essentially has thrown away $10,000.
Comments
joeblack wrote re: Lighting Upgrades: Opportunities in Existing Buildings
on 3/13/2011 10:27:59 PM
An energy efficient lighting upgrade is probably the only chance for you to cut operating costs significantly and is definitely a lasting solution worth investing in.
Regards,
Joe
Mogwai wrote re: Lighting Upgrades: Opportunities in Existing Buildings
on 1/25/2011 3:11:24 PM
I couldn't agree more with this article. However, while converting to T8's or T5's is an option, they are next to be phased out. Yes, they are more energy efficient than T12's, but they also contain Mercury. 2015 is the date set to ban mercury vapor bulbs in the UK, the U.S. is not far behind. And while many people overlook the amount of energy there is to save by converting, they also overlook another great candidate - Solid State Lighting. New Solid State LED Lighting has emerged in many different forms and for good reason. It can save you 50% to up to 90% on your energy costs and has life ratings of 100,000+ hours. Many of these are retrofitted and designed to eliminate waste by utilizing existing fixtures and therefore eliminating more cost. C & J Signs and LED Lighting is a great place to find out more information about the benefits, savings and tax incentives there are to make with a switch. You can visit them on the web at www.OurSignShop.com and click the link under the LED Products tab.
Decor_Design2010 wrote re: Lighting Upgrades: Opportunities in Existing Buildings
on 12/7/2010 12:15:32 PM
You couldn't of said it better, lighting makes a huge difference in a room. Our designers say that it is one of those little things many people can forget but that sets your building apart from just an average ordinary room. Thank you!
Hooman_b wrote re: Lighting Upgrades: Opportunities in Existing Buildings
on 5/11/2010 5:05:44 PM
This article is spot on when it says that lighting is the "easiest, most profitable investment compared to other energy-saving building system". This is the fastest and least expensive way to "green" a building. Most people do not realize that lighting represents a significant portion of electricity consumption and can reduce their energy use by switching to more efficient lighting. It is extremely common for office buildings to have fluorescent tubes and most are still T12. With the T12 phase out occurring this year, more and more building owners will have to upgrade their lighting system anyway. This is the perfect opportunity to retrofit their T12 fixtures with T5. Though it represents a little more effort, it can be extremely easy thanks to products like the LUM adapter or the LCM converter offered by Lumiversal. You can see how easy and affordable their products are at www.lumiversal.com
