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Calculating Cost Savings and Payback Period

August 08, 2019

You‘ve heard and probably even believe you can save money by switching over to LED? But how much? And how long is the payback period? This quick tip will walk you through the calculations.

What do you currently have for lighting?
Understanding what your current lights are is key? 400W? 1000W? Ballasts? Keep in mind most HID Lighting has a ballast, and a ballast will consume 15% more than what the bulb consumes alone. So if you have 400W HID lights, then chances are you are consuming at least 460 Watts per fixture.

What will your new LED Solution Be?
Converting to LED is easy if you walk back from luxes to watts. Figuring out the proper light levels, and then figure out the best solution to meet your requirement. That‘s how you get to your new fixture and the watts it consumes.

Putting it all Together
So if you get through the first two steps, then how do you calculate your savings. Say for example, you decide to retrofit your existing 400W HID fixture with a 150W LED linear high bay. That‘s a good start. How many fixtures are there in your facility? How many hours do you run per day? What‘s your cost of electricity? Knowing this helps us solve the math.

But wait, there‘s an easy button. We built an online LED lighting savings calculator that takes all the pain of doing this calculation. Try it, or email us, and we can run the numbers for you.




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