LED Light Life Span and Energy Useage Vs. Incandescent Lights
| LED Light Life Span | LED 7 Watt Bulb | Incandescent Light 60 Watt |
| Number of Bulbs Used | 1 | 1 |
| Bulb Lifespan | 50,000 hours | 1,000 hours |
| Cost of Bulbs | $50.00 | $1.00 |
| Electricity Cost (assuming 11hr/day use 365 days per year @ $.14kWh) | $3.93 | $33.72 |
| Usage Before Replacement | About 12.5 years | About 3 months |
| Total Yearly Cost | $3.93 | $37.72 |
| Total Cost Savings per LED light Bulb per year: | $33.79 | |
| Total Cost Savings per LED light Bulb over entire lifespan: | $422.37 |
*Cost savings are based on one (1) LED light bulb, and do not include the cost of time to change the bulbs.
Conclusion: With an initial investment of $50.00 per LED light bulb, you will break even mid-way through your second year, and you will save over $400 per bulb over the course of the bulb's entire lifespan. The more often you use the bulbs, the sooner the savings become apparent; if you light your business 24 hours a day, 7 days a week, you turn a profit within the first year!
Want to see how much money you can save? Use our Cost Savings Calculator (cost savings calculator also includes an assumed cost of labor for changing the lights)
A Net Operating Income (NOI) Example
Let’s assume that you pay for your common area lighting or the lighting at your company. Your electric bill is $100 a month.
You are looking to save money by installing LEDs but as further benefit you want to know how positively impacted your net operating income (NOI).
Common Area Electric Cost: $100/month.
Installing LEDs
Let's assume 80% cost savings.
You save $80/month, $960/year.
$960/ 0.08 (CAP Rate) = $12,000 in added property value.
You can see we took $100/mo. in expenses and reduced them to $20/mo. in expenses. This allowed us to add $12,000 in value to your property or company. I assumed that your property/company would sell at an 8% CAP Rate.
Now imagine that you have a large property/company and you are saving thousands a month and adding hundreds of thousands dollars in property value!
LED Lighting and Green Support
"A recent study found that green buildings generate 3.8% higher occupancy rates and are up to 30% more efficient." REDNews, Jan. '09, pg. 11
"Four out of 10 Developers and corporate users plan to retrofit buildings for energy efficiency in 2009-2010." NREI 2008 Green Bldg. Survey, Nov. '08, pg. 6
"Only 4% of the energy used to run a typical incandescent bulb produces light; the rest is frittered away as heat at the plant, over transmission lines or in the bulb itself, which is why you burn your fingers when you touch it." Time Magazine, Jan. 12, '09, pg. 35
Energy Savings is important to the Y-generation and thier parents. "According to a 2008 study by The Princeton Review, 63% of college applicants and their parents have a desire to learn about a college's commitment to environmental responsibility. Equally telling, 23% state that that information would either "strongly" or "very much" affect their college selection." Commercial Property News, Nov. '08, pg. 27
Do you have an all-bills-paid property that is in a collge town? "Students are not demanding sustainability but they expect it to be there,..."The average university would also be quick to promote a green and sustainable community. ..."What's in and what's out? Green building is in, but crown molding, hard-wired phones and carpet are out." Multi-Housing News, Dec. '08, pg. 13-14
"As Vacancies rise - and as some owners are also forced to hold on to buildings longer than intended - assisting clients' bottom lines has risen to the top of property managers' job descriptions. Thus, such firms have set out on the hunt for savings and revenue." Commercial Property News, Dec. '08, pg. 24