Archive for the ‘Benefits of Lighting Retrofits’ Category

Lighting Efficiency & Today’s Economy

Tuesday, March 16th, 2010

Lighting Efficiency & Today’s Economy

Many of us feel caught up in the current economic uncertainty. It is pleasant to remember better days when the economy was thriving and corporate resources were being invested in robust expansion. Now those expansions are getting older.  Many of the commercial buildings in use today were built pre-1980.  At the time they were built few people were thinking about energy costs and the environmental imperative of “going green”. Truthfully, most of us were lusting after the biggest V8s we could afford.
How times have changed – hybrid cars, the whole idea of less is more, recycled everything – but what about these buildings?  They were built to last; but not to be efficient.

So what can we expect for today and beyond?

Even as economic conditions improve, today’s executive will be cautious about expansion, especially expansion into more bricks and mortar. They will look to their current buildings and demand ways to increase efficiency and reduce costs. They are conscious of being good corporate citizens and are profit motivated managers.

What is the best way to modernize these buildings, and what will drive the decision-making?

Certainly energy is going to be a key driver.  According to the US Department of Energy (DOE), lighting represents 40% of the average commercial building’s electric bill, and an expensive component considering the average commercial retail cost of electricity rose nearly 25% over the past five years to $0.1013/kWh as of November 2008.  And according to the Energy Cost Savings Council, lighting upgrades generate an average project payback period of 2.2 years and a 45% return on investment. [New energy estimates indicate continued increases in energy costs, with electric costs rising 10% to 30% in the next 3 to 5 years]

As a result, energy-efficient lighting is generally considered the easiest, most profitable investment in energy saving building systems.  Even so, less than 20% of the existing pre-1980 U.S. Commercial building stock has benefited from some form of lighting renovation, according to the 2003 Commercial Building Energy Consumption Survey produced by DOE.  The survey found that there were 4.6 million commercial buildings (excluding malls) in the U.S., representing about 65 billion sq. ft. of floor space.  About 2.5 million buildings, representing 60% of buildings and 57% of floor space, were built before 1980.  Of these, about a million have benefited from some form of renovation.

Of the 1 million that were renovated, was energy efficient lighting a part of the upgrade?

Unfortunately not – Lighting renovations, while a popular form of renovation, have occurred in only 18% of pre-1980 buildings, suggesting that there are about 25 billion sq ft of building floor space still lighted to pre-1980 standards and likely using the least-efficient lighting systems allowed by law.  The rest represent today’s best candidates for lighting upgrades.

Lighting efficiency has the potential to be a “winner” in today’s economy.  Not only is operating cost savings via lighting efficiency a door opener, but imagine the greater worker satisfaction with a quality lighting design – it can certainly be a ladder that escalates performance on any projects.

Are you wondering if your commercial building is a good candidate for a lighting retrofit?  Contact an Aelux Lighting Consultant today to have your questions answered and learn more about lighting rebates.

(Source: Illuminate Magazine)

Warehouse Lighting and the Pennsylvania power rate increases

Thursday, February 25th, 2010

Warehouse Lighting and the Pennsylvania power rate increases

Generally speaking this is often overlooked, but in light of the recent rate increases in Pennsylvania this is now taking a priority for many businesses.

Many citizens and businesses in Pennsylvania were greeted with a dramatic electric rate increase. The problem is that this rate increase comes at a time of fairly extreme economic difficulties for many companies. .

So what’s the solution?

As noted above, an overlooked part of the electric bill (and fairly expensive one) is warehouse lighting. In recent years there has been more and more advanced technology regarding lighting, and to make this more attractive there are currently many tax benefits and a cost reduction program that come from the power company themselves.

In a nutshell a significant part of the cost of upgrading to energy efficient lighting for your warehouse may be offset by these programs.

Aelux can assist you though the entire process and reduce your electric bills by taking advantage of the existing programs. You really have nothing to lose by exploring this option.

The alternative of course is to continue to pay the huge increase from the electric companies with no reduction in power usage to offset the increased rates.

It’s typically a pretty clear cut option, see what a firm like Aelux can do for you and your company. If the solution presented will reduce your monthly power bill, and due to the tax benefits and financial assistance from the power companies reduce your total cost, then clearly it’s something that your company needs to explore.

Lighting Retrofits: Misconceptions

Tuesday, November 24th, 2009

Many obstacles can get in the way of projects designed to improve a facility’s energy efficiency. Topping this list of challenges are such issues as finances, product specification and calculating the return on investment (ROI). These issues might create legitimate concerns for maintenance and engineering managers and others involved in project planning, but they need not be deal breakers. In fact, they might not even be real obstacles. Organizations often make decisions based on uncertain or incomplete data, and diminish potential ROI.

Lighting retrofits epitomize this scenario. These projects can help facilities reduce energy use and create more efficient and aesthetically pleasing indoor environments, but only if planners base their decisions on accurate information. Companies often view lighting-upgrade projects as a revenue drain, when in fact they represent a positive cash flow that renews itself year after year. They tend to get focused on one solution, like a lamp and ballast retrofit, which limits the options and opportunities.

Aelux ensures that you will make an informed decision based on a comprehensive analysis including a proposal that clearly defines why a particular retrofit recommendation was made and a photometric analysis to substantiate the retrofit recommendation. Also expect to see what the energy and cost savings will be, and what rebate and tax incentives are available. Additional detail should include an explanation of tax benefits, fixture and component spec sheets, warranty information, environmental benefits and a transparent description of model inputs.

What Is A Lighting Retrofit?

Thursday, November 19th, 2009

A lighting retrofit is when you replace components in the system with counterparts which make it use energy more efficiently. A lighting upgrade is any strategy that reduces the system’s energy use. Energy savings are realized over time and can be significant enough to not only pay for the new equipment, but produce a return on the investment.

Understanding Energy Consumption:

Utilities bill their customers in several ways including an energy use charge, demand charge, power factor charge, fuel adjustment charge and other charges. Here is a look at Energy Consumption:

Energy Consumption (kWh) = Input Watts (kW) x Time (hours operated in a given year)

To reduce energy consumption we can do two things. Reduce the input wattage or reduce the hours of operation. Input wattage can be reduced by replacing lamps and ballasts with more-energy-efficient counterparts or by removing lamps and ballasts. The hours of operation can be reduced by using sophisticated controls and other methods.

A Safe Investment In A Tough Economy

Thursday, November 12th, 2009

Many people are currently being cautious with their spending given the current state of our economy. However, a safe investment that everyone can afford is in CFLs or Compact Fluorescent Light bulbs. Making the switch from traditional light bulbs to CFLs will not only reduce your electric bill, but will also prevent greenhouse gas emissions that contribute to global climate change. In the average home, lighting accounts for about 20% of the electric bill. By switching to CFLs, your lights will be using 75% less energy than incandescent light bulbs. Since CFLs cost little upfront and last up to 10 times longer they provide a quick return on investment.

Think of it this way: If only 1 traditional light bulb was replaced by an ENERGY STAR CFL in every home in America, in only 1 year it would save enough energy to light more than 3 million homes and prevent greenhouse gas emissions equal to that of more than 800,000 cars. So why haven’t you made the switch yet?

How To Raise Your Company’s Energy GPA

Monday, October 26th, 2009

Utilities throughout the country are sending “energy report cards” to customers that compare their energy usage to other comparable operations. California has measured a 2 ½% energy consumption reduction over the 16 month period they have been issuing “energy report cards” to their customers.

This blog has previously note that the U.S. Department of Energy reports that lighting represents 40% of the average commercial building’s electric bill and the Energy Cost Savings Council, reports that energy–efficient lighting projects generate an average 45% return on investment, paying for themselves in just 2.2 years. And yet, 80% of existing commercial buildings operate lighting systems installed before 1986.
A lighting upgrade will substantially increase that Energy GPA, as well as the energy cost drain on your company’s bottom line. A great place to start is the Aelux Resources page.

The Second Color in Henry Ford’s Manufacturing Process — GREEN!

Wednesday, September 30th, 2009

Henry Ford (yes … that Ford) said over 80 years ago in his book “Today and Tomorrow” (1926) that “…we will not so lightly waste material simply because we can reclaim it— for salvage involves labour. The ideal is to have nothing to salvage.”

If you haven’t updated your lighting recently, you are wasting material – namely dollars. You can calculate how much with our energy savings calculator.

EASY Ways to Save Energy

Thursday, August 20th, 2009

The Building Owners & Managers Association (BOMA) calculates that asset value increases by $2.50 for every square foot of commercial property that reduces its energy consumption by just 10 percent, and published 30 simple ways to accomplish this. Their recommendations for lighting include:

Lighting can represent as much as 30 percent of a building’s energy usage, so changes to lighting can mean significant energy savings.

RELAMP
Even if you just re-lamped your buildings 3 years ago, take a lighting survey again. Lighting continuously gets more efficient. Converting to more efficient lamps and ballasts saves
total building energy.

DE-LAMP and DISCONNECT UNUSED BALLASTS
Many buildings are just too bright. If de-lamping
opportunities exist, you may be able to go from 4 lamps in perimeter down to 2 lamps and from
4 lamps to 3 lamps in interior spaces. Also be sure to have unused ballasts identified and disconnected.

SEE IF ANYONE IS LEAVING LIGHTS ON
Periodically, stay at work late or drive past after hours to identify additional opportunities for energy savings. Pay attention to exterior lighting as well.

INSTALL OCCUPANCY SENSORS
Install occupancy sensors to automatically turn off lights when physical movement stops. This
strategy may be especially effective in spaces that are used infrequently, such as storerooms and conference rooms. Occupancy sensors work not just for lights but also for HVAC controls.

USE HIGH EFFICIENCY LED EXIT SIGNS
Replace inefficient exit signs with high efficiency LED exit signs. LED exit signs operate 24/7 and
have lower maintenance costs due to their extended life.

AELUX welcomes companies to contact any Aelux team member for a no-cost lighting audit that addresses each of the above issues and more! BOMA’s complete list of recommendations is posted here.

The Economics of Lighting Retrofits

Monday, June 15th, 2009

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.

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