Many businesses are seeking ways to cut overhead costs and slim down the monthly/yearly spending on necessary evils such as lighting, HVAC and machinery amongst others. We all realize that these costs are necessary and vital to the operation of the business but there has to be some way to trim these costs and increase your business sustainability.
Utility companies all across the US are offering rebates for energy efficiency upgrades to appliances, windows, lighting, HVAC, power supplies and more. While these are all nice, and very helpful, the quickest way for you to notice a distinct decrease in your monthly bill is to upgrade your lighting. In most cases, lighting accounts for about 40% of your total electric bill. Switching to LED lamps from inefficient fluorescent lamps or high pressure sodium, or metal halide or even incandescent bulbs can cut an estimated 25% off of your total monthly bill.
Let’s have a look at some math:
- Total electric bill is $2000 month (thus $800 of that is lighting)
- LED Lighting saves you $500 per month on lighting costs alone, plus some extra for the reduction in AC usage (which the utility companies add in too)
- You are now paying $1500 per month and putting and saving $500 per month
- Savings of $6000 per year
- Utility company gave you a nice rebate, typically about 45% of the total cost of lighting upgrade, so now your lighting investment will take about TWO years to pay for itself.
- After two years you have saved probably $13,000+ (increase in electric costs) and probably an extra $750 in maintenance and replacement costs
- The LED lights will typically last you 10 -15 years (in normal business hours) and will begin paying you beginning year three.
- $48,000 in energy costs will be saved in ten years of LED operation and that is assuming rates do not go up, and you can probably add in another $5000 in maintenance and replacement fees.
I understand the big picture is hard to grasp and that the funds may not be there for your business but there are so many options out there designed to help businesses make these energy efficiency upgrades (Loans, Leases, grants). Business owners need to look at LED lighting upgrades as a Capital Expenditure. This is a move to not only increase your lighting levels at your business but this is also a sustainability move, which will reduce your overhead costs moving forward and reduce the environmental footprint your business is leaving for the future generations. The long and short of it is that businesses have to begin making these upgrades and when it really boils down to it LED’s are the best solution for MOST applications. Contact us to see if it’s right for your business.