LEDs have overtaken conventional lights for many reasons: long lifespans, decreased energy consumption, better light output, and low maintenance. According to the Department of Energy, by 2030, LED lighting will save 190 terawatt hours of energy annually, which equates to a massive $15 billion!
By embracing LED technology, you can reduce your electric bill significantly. Just by looking at the energy savings (up to 75%, even more with hi-tech features) you can see why it makes sense to bid farewell to fluorescent and HID lights.
Generally, people consider converting to LED for two reasons.
1. To lower their utility bills
2. To lower the maintenance costs related to lighting
If the main reason you’re changing to LED technology is because you want to lower your utility bill, here are three scenarios when it makes sense to make the switch.
1. When the Energy Savings Are Significant
If you operate a facility where lighting is of utmost importance, it’s best to switch to LED. The lights will lower energy consumption even if they run for 24 hours every single day. If HID lights run for long hours, they consume a lot of electricity and also start flickering. Converting indoor High Bay Lights to LED can save you a lot of money, month after month
2. If You Spend A Lot on Electricity
How much you pay for electricity will depend on the area you live in. The rates in some areas are very low (.05 kw/h) while rates in some areas are very high (25 kw/h). Consider the cost of electricity in your area as well as your consumption to see whether you should convert to LED technology immediately or wait for a while. If the electricity cost in your area is 10 kw/h or more, we recommend that you seriously consider switching to LED.
3. If Your Utility Company Gives Good Rebates
While most utility companies give rebates to those who switch to LED technology, some give more generous rebates than others. Since converting to LED is not cost-free, a generous rebate can help you to recoup your investment much quicker than you expected.
The bottom line is, always look at how much you will save by converting to LED.
For example, if you operate a production facility with 1000-watt metal halide lamps that run 12 hours daily every day of the week and the electricity cost in your area is 12 kw/h, you could save a significant amount of money if your utility company gave you a rebate of $60 per fixture when you change to LED. If you choose fixtures that need very few watts to produce many lumens, you may be able to recoup your investment in less than one year. How awesome is that?
However, if your lights only operate for 2 hours a day, your electricity cost is .05 kw/h, and your utility company doesn’t give rebates for converting to LED, you may not be able to get back the money you invested so quickly.