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LED conversion - how much will I save?

Author: Glenn Harper
Published: January 26, 2015

Lighting constitutes an incredible 20% of worldwide energy consumption so it likely also accounts for a large part of your business’s electricity costs. Investing in an LED conversion (i.e. switching your existing light bulbs to LED bulbs) may seem daunting initially, but you'll end up making huge savings and reaping all kinds of benefits into the bargain.

LED conversion advantages

LED lighting products have been intensely developed since the turn of the century and they’ve steadily decreased in price.

  • Energy-efficiency - LED technology is extremely energy efficient, using up to 90% less energy than incandescent lighting (including halogen) and 60% less than old fluorescent lighting.
  • Lifespan - LED light bulbs last up to 50 times longer than a traditional light bulb, so you spend far less time and money in maintenance and can reduce your stock of spare light bulbs.
  • Temperature - Because LED lighting projects little or no IR heat in its beam, converting to LED reduces fire risk and, potentially, air conditioning costs. LED spotlights are useful for lighting heat-sensitive items such as artworks or food.
  • Tough - LED lighting is resistant to shock and vibration and performs reliably at cold temperatures (typically down to -20°C).

How much can I save by converting to LED?

Great question - and the answer is one you’ll like! The combination of longer lifespan and lower energy consumption guarantees a return on investment, whether you're talking one bulb or a thousand.

The Telegraph recently agreed that switching to LED bulbs saves money in the home. In a business, where lighting is kept on for long hours and bulb changes are frequent, an LED conversion can save many thousands of pounds per year.

Useful example

To give you an idea of how much you can save, we have put together an example scenario where a business hopes to benefit from an LED conversion. Each of the bulbs featured is 'on' permanently for 24 hours a day.

Current Running costs

Area Bulbs used # of Bulbs Elec. cost per unit Total Kwh Annual cost
Women’s WC Bar Area

50W Halogen MR16

29

£0.150

35

£1,905.30

Men’s WC Bar Area

50W Halogen GU10

14

£0.150

17

£919.80

Conference Café

42W Eco-halogen GLS

15

£0.150

22

£827.82

Main Bar

28W Fluorescent 2D

53

£0.150

36

£1,949.98

Total

109

£5,602.90

Post conversion running costs

Area Bulbs used # of Bulbs Elec. cost per unit Total Kwh Annual cost
Women’s WC Bar Area

7W LED MR16

29

£0.150

4

£266.74

Men’s WC Bar Area

5.5W LED GU10

14

£0.150

2

£101.18

Conference Café

10W LED GLS

15

£0.150

2

£197.10

Main Bar

12W LED 2D

53

£0.150

8

£835.70

Total

16

£1,400.72

As you can see, running costs are reduced by £4202.18 per year after an 85% improvement in energy efficiency.

Having made a strong case for conversion based on running costs, the only objection left is that of outlay. LED bulbs cost more than traditional alternatives. With this in mind, let’s look at a cost comparison over a 4-year period, this being the average lifespan of an LED bulb if left on permanently.

Our calculations include an estimated servicing cost of £5 per bulb change, based on a maximum 20 minutes of work and average pay rates for electrical maintenance workers.

Current replacement costs over 4 years (including maintenance)

Area

Bulbs used

# of Bulbs

Cost per bulb

Times replaced in 4yrs

Total (incl. £5 maintenance cost per bulb change)

Women’s WC Bar Area

50W Halogen MR16

29

£0.89

8

£1392.29

Men’s WC Bar Area

50W Halogen GU10

14

£1.49

12

£1111.44

Conference Café

42W Eco-halogen GLS

15

£1.59

17

£1576.29

Main Bar

28W Fluorescent 2D

53

£5.39

2

£1387.01

Total Bulb Cost

£5467.03

LED replacement costs over 4 years (including maintenance)

Area Bulbs used # of Bulbs Cost per bulb Times replaced in 4yrs Total (incl. £5 maintenance cost per bulb change)
Women’s WC Bar Area

7W LED MR16

29

£12.99

1

£898.42

Men’s WC Bar Area

5.5W LED GU10

14

£10.99

1

£377.72

Conference Café

10W LED GLS

15

£10.99

1

£404.70

Main Bar

12W LED 2D

53

£24.99

1

£2,913.94

Total Bulb Cost

£4,594.78

Over the 4-year period a further saving of £872.25 is made by our theoretical business on reduced maintenance.

Lighting controls such as dimmers, motion sensors and timers substantially reduce energy costs and are included in many LED conversions. These controls also increase bulb lifespan, thus having a further desirable effect on maintenance costs.

LED conversion conclusion

Though the cost is not initially trivial, an LED conversion offers many tangible benefits. A substantial reduction in energy bills is the main attraction, but cuts in maintenance costs can also be significant depending on the size and nature of the building.

Reducing your carbon footprint by switching to LED is a worthwhile endeavour that will win favour with customers and keep you ahead of legislation changes. With a proposed EU ‘halogen ban’ looming in September 2016, the time is ripe to make the change.

An LED conversion can be achieved with very little disruption to your business. Lyco Direct have helped some of the UK’s biggest companies convert to LED. For larger projects, we offer flexible finance schemes that allow you to offset payment with energy savings.

If you’d like free expert advice on converting your business’s lighting to LED, please give us a call on 0843 3177820 and we’ll be happy to help.

Why not take a look at our full range of LED bulbs and LED fittings.

Looking for more information on Lighting? Try Lighting Advice.


This article was tagged with LED conversion, Conversion, LED, Light bulbs