The Economics of Lighting Retrofits
Retrofitting the lighting in a commercial or industrial building is a highly profitable investment. Although the up–front cost can be substantial, it is readily offset by the energy savings, which can pay for the entire project in as little as a year or two.
Certainly, a 50–100% return on invested capital warrants close consideration. The return will also continue for many years in the future and, if energy rates increase, become even greater.
Consider a 100 fixture retrofit with an estimated 60% reduction in energy consumption and installation cost of $25,000; these numbers are quite typical of installations performed by a qualified ESCO retrofitter. Annual electric costs for this scope of pre–retrofit lighting typically run about $18,500. The new, more efficient and higher quality lighting system will lower costs by the estimated 60% increase in efficiency, which translates to $12,000 less! And leasing options are available such that much of the savings remain, even after the monthly lease payment.
In sum, lighting retrofits require no cash outlay and provide for better lighting, reduced costs and higher profits. Updated energy efficient lighting systems also help the environment as well as your bottom line.
Tags: ESCO, installation, investment, retrofit, savings