The Impact of Upgrading Lighting Systems on Cost and Energy Savings

What are the potential cost and energy savings associated with upgrading lighting systems?

Given the data provided, how can we calculate the various cost and savings metrics from replacing the existing lamps with LED alternatives?

Cost and Savings Analysis

Replacing the 40 HID lamps with 40 LED high bay lamps will cost $8,800, and replacing the 15 T12 fluorescent lamps with LED T12 replacement lamps will cost $900.

To determine the various cost and savings metrics based on the lamp replacements, we can break down the calculations as follows:

Cost of Replacements:
Replacing 40 HID lamps with 40 LED high bay lamps at $220 per lamp installed: 40 lamps * $220/lamp = $8,800.
Replacing 15 T12 fluorescent lamps with LED T12 replacement lamps at $60 per lamp installed: 15 lamps * $60/lamp = $900.
Total cost of lamp replacements: $8,800 + $900 = $9,700.

Energy and Cost Savings:
HID lamps were 400 watts each, and LED high bay lamps are 125 watts each. Energy saved per lamp = 400 watts - 125 watts = 275 watts.
Total energy saved for 40 lamps = 40 lamps * 275 watts = 11,000 watts or 11 kilowatts (kW).
Cost savings per year (assuming 250 working days per year) = $10.56 * 250 days = $2,640.
The lamp replacements will cost $9,700 initially but result in ongoing energy cost savings of $2,640 per year. Over time, the energy savings will offset the initial cost, resulting in long-term financial benefits.