This document compares the costs and savings of switching from traditional lamps to LED lamps. It analyzes 212 lamps over their useful lifetimes. Switching to LED lamps would save over $76,000 in energy and maintenance costs over the useful lifetimes due to lower wattage per lamp. LED lamps last much longer than traditional lamps, reducing replacement costs. The return on investment for switching to LED lamps is shown to be 36.1% after 3 years and the payback period is 1.67 years, making it a cost effective switch.

1. Sample Quote
COMPARATIVE ANALYSIS Current Proposed
Lamps (Bulbs)
Supplier Various LED $6,310 Maintenance
Product Quantity 212 lamps 212 lamps HVAC
8% $5,590
ENERGY COST Energy 7%
Watts Per Lamp (Avg) 66.0 W 12.3 W $8,136
Total kW 14 kW 3 kW 11%
Hours in Application (Avg) 13.7 hours per day
Annual Light Energy Consumption 70,193 kWh 13,128 kWh
Average Cost per kWh $.1000 per kWh Light Energy
Annual Energy Cost Change 3.00% $56,950
Annual Light Energy Cost (Year 1) $7,019 $1,313 74%
Ratio of Light to HVAC Energy Savings 14%
PRODUCT & MAINTENANCE COST
Average Product Cost $4.79 $52.15
(i.e. Lamps) $1,016 total $11,055 total
Average Fixture Costs $0 total $1,039 total
Average Maintenance Cost $4.25 $3.81 COST SAVINGS ANALYSIS 1st Year Useful Life
(i.e. Installation) $900 total $807 total Light Energy Savings $5,707 $56,950
USEFUL LIFE HVAC Energy Savings $815 $8,136
8,050 Hours 50,000 Hours Product Savings (Lamps) $632 $6,310
Useful Life in Application
1.61 Years 9.98 Years Maintenance Savings (Installation) $560 $5,590
# of times replaced Replaced 6.2x TOTAL SAVINGS (Energy, Product & Maint) $7,714 $76,986
INVESTMENT ANALYSIS ROI IRR
ENVIRONMENTAL ANALYSIS 1st Year Useful Life
Light Energy Consumption Savings 57,066 kWh 569,500 kWh Investment $12,901
Air Pollution & Environmental Damage Reduction 3 year IRR 36.1%
Carbon Dioxide (Global Warming) 12 lbs 121 lbs 5 year IRR 52.6%
Sulfur Dioxide (Acid Rain) 20 grams 202 grams 10 year IRR 59.22%
Nitrogen Oxides (Acid Rain & Smog) 47 grams 468 grams Payback Period 1.67 Years
Environmental Benefit Equivalence
Tree Plantings 10.5 acres 104.5 acres TOTAL COST OF OWNERSHIP ANALYSIS w/Lumen Output
Gasoline 5,188 gallons 51,773 gallons Total Cost of Ownership w/Lumen Output $5.45/ml-hr $2.07/ml-hr
Vehicles 8.1 vehicles 80.7 vehicles TOTAL SAVINGS w/Lumen Output 62%