Why retrofitting with LEDs makes sense
August 19th, 2010

Posted under Alpenglow Lighting Design News

LED retrofit lamps, such as MR-16s, are a great alternative to their halogen counterparts. Here at Alpenglow, we did some simple calculations for a typical small retail store (1500 square feet) with 50 halogen MR-16s. This is about 1.5W/sft, or in compliance with the basic retail criteria in the International Energy Conservation Code (IECC) 2009.

If we assume (50) 50W lamps at $0.085/kWh, and the store is open 10 hours per day, 7 days a week, the store will burn about 9,100kWh per year at a cost of $773, plus 2 lamp replacements (based on 2,000 hour lamps at $6 each), so annual cost is about $1,373. If cooling is added in (again, for simplicity, we assume cooling is every day, heat is ignored), annual electricity cost for lighting and the cooling to balance it is about $1603.00 and generates 6.95 tons of CO2.

If the (50) lamps are changed to 9W LEDs (50,000 hours, about 40 each), the lighting power drops to 1,638kWh, or $139. If we assume that the in the first year 50 lamps are purchased, powered, and cooled, the total cost for the first year is about $2,180. This number drops significantly the second year, as the total power cost(lighting plus cooling) drops to about $180. Total tons of CO2 drops to 1.25. This represents a total savings annually of about $1,423. The Internal Rate of Return over 10 years, at 4%, is 246%.

Even if your actual IRR is half of this model, isn’t that a good investement? Other benefits include the reduction in labor costs to replace the lamps, as well as marketing opportunities that show tangible results, not just ‘greenwashing’.

Naturally, this is a simple example, and many variables can affect the results, such as kWh rate, operation hours, and quantity of lightbulbs. Contact Alpenglow today to discuss how relamping can help your bottom line, from retail, to warehouse, to hospitality.

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