Ask The Experts, Part Two

We were recently contacted by a journalist who was doing some research for an article on green technology. Joel Slavis, President and Chief Lighting Consultant at LED*Waves, had the following to say:

1. I know that LED lighting is a smart choice in terms of energy efficiency and being “green.” Can you explain why it’s also a smart choice in terms of business sense?

LED lighting is also a smart choice in terms of business sense for the same reasons, actually. Due to rising energy costs (ConED is raising their rates by 23%), a reduction in energy consumption very quickly translates into big monetary savings. It’s difficult to put an exact number on the savings since there are many variables (demand rate, cost per kwh, wattage of current lamps, number of lamps, annual hourly usage, etc.), but the studies we have done indicate that energy costs due to lighting can easily be cut by 30% to 40%.

In addition to saving money by reducing total energy consumption, LED lighting will also save money by virtually eliminating maintenance and relamping costs (which for many facilities are larger than the energy expenditure). Furthermore, because LEDs use much less energy and emit only a narrow spectrum of visible light, they are much cooler than other lighting technologies, thus they reduce the air conditioning load.

For retail operations, having low-to-no heat output can increase sales. We were informed by a major retail clothing outlet that their customers only browse for short periods of time because they feel that the existing halogen lamps are “burning their heads.”

The heat output you feel from halogens and fluorescents is UV radiation. LEDs do not produce any UV rays so they can easily extend the life of anything that is heat- or light-sensitive, such as produce and artwork. This is yet another way in which LED lighting can save.

2. The rental and construction industries are being widely affected by price pressures and the slowdown of the economy. How could making the switch to LED lighting help a rental company with several branch locations save money?

In today’s economy, what you make is really dictated by what you save. In other words, the ability to get the most out of every cent is what separates the businesses that will survive the current situation and eventually thrive from the ones that will falter and subsequently fall by the wayside. The key is conservation, and its importance increases exponentially as the application size increases. An LED lighting upgrade will save one store a lot of money, but an LED lighting upgrade will save 50 stores A LOT of money.

3. What type of initial investment would be required and what would be the expected ROI from making the switch to LED lighting?

Although LEDs are certainly more expensive upfront, we have found with our clients that the payback period is between 18 to 30 months.

4. If a rental company is interested in making the change to LED lighting inside its facilities, who can they turn to get started?

LED*Waves! Different companies specialize in different areas of lighting, and I cannot speak for other companies, but LED*Waves does offer a wide variety of solutions for general lighting purposes. We have the brightest LED PAR38 on the market as well as higher output solutions designed for tunnels and street lighting.

5. Is it possible to use LED lighting when replacing bulbs on construction equipment?

It depends on what type of bulb is being replaced.

6. Are there any government incentives in the United States to encourage companies to use LED lighting over traditional bulbs?

I don’t believe there are any federal incentives as they are determined by each state. New York has NYSERDA. USGBC might have some incentives; they developed the LEED certification standard. Of course, the White House introduced the Energy and Security Act of 2007 last December which calls for the phasing out of incandescent bulbs over the next decade or so. This is more of a mandate than an incentive, but it is indicative of an emerging trend that is not simply good for the environment, but good for everyone's wallets.

LED*Waves - Changing the world, one bulb at a time.