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The return on investment of LED lighting

The return on investment of LED lighting

LED lighting is known for being very energy efficient. LED lighting also has a long life span. However, it is an investment to replace all your lighting with LED. How quickly will this investment be recouped? And how is it possible that LED consumes much less power than traditional lighting? You can read more about it in this blog







 

Saving energy with LED lighting

LED lighting is very energy efficient. Therefore a lot of energy (and money) can be saved when using LED lighting. LED lighting needs much less power than incandescent or halogen lamps, while the same amount of light can be produced. An incandescent lamp consumes a lot of electricity because the lamp also gets very hot. A large part of the energy is therefore lost to this. With an incandescent lamp, the electricity runs through a filament. The filament heats up to 3000 degrees. A halogen lamp works in about the same way as an incandescent lamp. However, the filament of the halogen lamp can give more light than an incandescent lamp with the same amount of power. A halogen lamp is therefore slightly more economical (25%) than an incandescent lamp. LED lighting works in a completely different way. A much larger part of the electricity is converted into light and only a very small part into heat. As a result, much less power is consumed. Compared to an incandescent lamp, LED lighting can save about 90%. Compared to a halogen lamp, this is about 80%. This is not only good for your wallet, but also for the environment. 
 

Lifespan LED lighting

LED lighting is very energy efficient. In addition, the lifespan of LED is much longer than that of traditional lighting. This is because LED becomes much less warm. The chance of burning out is therefore very small. In addition, LED is much more resistant to shocks and vibrations. On average, LED lighting lasts 35,000 hours, but can even last up to 50,000 hours. In comparison: an incandescent lamp lasts on average 1000 hours and a halogen lamp 3500. LED lamps therefore need to be replaced much less often than incandescent and halogen lamps. For all our products, the number of operating hours is indicated in the specifications.
 

Invest in LED lighting

Replacing all your lighting with LED is an investment. Especially when it comes to replacing the lighting in a large building, such as an office, a shop or a warehouse. However, it is certainly worth investing in LED. The return on investment is very short. After about a year you will therefore only save money with your new LED lighting. Below we give a number of calculation examples that make it very clear what the return on investment is. 
 

The return on investment of LED lighting

The return on investment of LED lighting can easily be calculated. The information we need for this is the power consumption, the life span, the purchase price, the number of hours burned, the number of kWh and the price per kWh. We give a number of examples below.

The number of kWh is calculated as below:
Wattage lamp x number of lamps x burning hours per day x user days per year / 1000.
 

Replacing incandescent lamps with LED lighting

For this example, we assume the replacement of 30 incandescent lamps and 2000 hours of operation per year (250 days, 8 hours per day). We assume a price of €0.09 per kWh. This is the average price for companies

Incandescent lamp
Power consumption: 25 watts
Lifespan: 1000 hours
Purchase price: €29.70 (€0.99 each)
Consumption per year: 1500 kWh

The costs per year are as following: 1500 x €0,09 = €135

LED lighting
Power consumption: 3 watts
Lifespan: 15,000
Purchase price: €59.70 (€1.99 each)
Consumption per year: 180 kWh

The costs per year are as following: 180 x €0,09 = €16,20

The saving on energy costs is €118.80 per year. The investment in LED lighting of €59.70 is therefore earned back in about half a year. In addition, the incandescent lamps have to be replaced after only half a year. The LED lamps last 7.5 years. You can also save a lot on the replacement costs. 
 

Replacing halogen lamps with LED lighting

In this example we are going to replace halogen lamps with LED lighting. We assume the replacement of 30 halogen lamps and 2000 hours of operation per year (250 days, 8 hours per day). We assume a price of €0.09 per kWh. This is the average price for companies.

Halogen lamp
Power consumption: 25 watts
Lifespan: 3500 hours
Purchase price: €44.70 (€1.49 each)
Consumption per year: 1500 kWh

The costs per year are as following: 1500 x €0,09 = €135

LED lighting
Power consumption: 5 watts
Lifespan: 15,000 hours
Purchase price: €89.70 (€2.99 each)
Consumption per year: 300 kWh

The costs per year are as following: 300 x €0,09 = €27

The saving on energy costs is €108 per year. The investment in LED lighting of €89.70 is therefore earned back within one year. In addition, the halogen lamps have to be replaced after 1.75 years. The LED lamps last 7.5 years. You can also save a lot on the replacement costs.  

  Annelies     14-08-2019 13:30     Comments ( 0 )
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