Is a Commercial LED Lighting Retrofit Right for Your Company?
November 15, 2019
The term “commercial LED lighting retrofit” can be a little overwhelming. When searching for commercial LED lighting companies, you have questions like:
- What does a commercial LED retrofit mean?
- How much will a commercial LED lighting retrofit cost my company?
- What type of return on investment can we expect?
What is a Commercial LED Lighting Retrofit?
The simple definition of a commercial LED lighting retrofit, is the renovation of your old lighting fixtures and bulbs. It improves your lighting output and temperature, all while emitting less heat and saving money.
What does a Commercial LED Retrofit Cost?
A commercial LED lighting retrofit is a capital improvement, and the prime barrier often falls on the high upfront cost. Even with the energy and maintenance savings, businesses often struggle with justifying this type of major renovation. What companies need to understand is that high-quality LED lighting can deliver real capital improvement.
What is the Return on Investment for a Commercial LED Lighting Retrofit?
We are going to combine the above two questions and answer with several examples. Organizations must understand that ROI depending upon a few factors:
- What areas you are retrofitting – Internal or External
- What existing lamps and fixtures are being replaced – Fluorescent, HID, Incandescent
- The quality of LED products you will be utilizing – Not all LED’s are Made the Same
Below are two very different examples that saw very different results.
Example 1: A Large Discount Retailer
In this example, a national variety store company with thousands of locations was in need of a turn-key solution for 758 of their locations. They wanted to reduce both energy and maintenance costs while improving the security of their parking lots.
Action Services Group working with the customer selected LED parking lot products that ensured the customer’s goals were met in a cost-effective manner.
We replaced the following lamps and fixtures with:
- 400W HID Parking Lot Lights with 15k Lumen Parking Lot Lights
- 400W HID Flood Lights with 15k Lumen Flood Lights
- 150W HID Wall Packs with 4k Lumen Forward Through Wall Packs
The overall commercial LED lighting retrofit investment was $1,896,363.
The LED retrofit reduced their lighting energy by 62% which came out to a total of $3,419,191 saved over the first 10 years. They eliminated an annual maintenance cost of $650,665 with an expected $9,016,273 savings over 10 years. Their light levels were improved by specified light distribution patterns, to provide safe well-lit parking lots. The energy savings and other benefits gave them a 22-month return on investment. As an added bonus, they reduced their greenhouse gases by 3,839,611!
The driving factor on this commercial LED retrofit was safety, followed by energy savings. Parking lot safety is a major concern across the country. Download our free eBook, Parking Area Liability, are You Vulnerable, for more information.
Example 2: A Casual Dining Restaurant and Sports Bar
In this example, a casual dining restaurant and sports bar with several hundred locations operated approximately 623 company-owned restaurants located in 37 states, needed a solution to reduce both energy and maintenance costs while improving current light levels in its food prep (Back-of-House) area.
Action Services Group reviewing their existing lighting (T8-Lamps, Electronic Ballasts) ad recognized that a traditional retrofit approach: replacing these components with upgraded lamps. Would not achieve the cost-effective improvement required by the customer.
We then offered the customer an LED Linear Tube retrofit program based on our manufacturer product-neutral approach. We replace the existing outdated fluorescent lamps and ballasts with new energy-efficient LED Direct Wire Linear Tubes.
Their overall commercial LED lighting retrofit cost them $625,000.
The results for this commercial LED lighting retrofit was a reduction in energy costs of $1,300,000+ over the following 5 years, with a 63% energy savings. Their maintenance cost savings was estimated at $800,000 over 5 years.
The customer also saw a reduction of 3,300,000+ lbs. Of greenhouse gases. This was in line with their company’s Go Green initiative. With the customer’s utility rebates (Action Services Group managed all rebate programs) they saw a 14-month return on investment.
If you are interested in replacing your fluorescent lamps but need a more in-depth view of what to expect. Try our eBook, Replacing Fluorescent Lamps with LED Fixtures or Linear LED Tubes.
How will a Commercial LED Retrofit Help Your Organization?
There are many more examples of how an LED retrofit has saved organizations money. You can review some of these in our Case Study Education Center. But out of everything you learned in this article, we would like to hit home on one major concept. When searching for a commercial LED lighting company, we highly suggest looking for one that is product-neutral. Like we said before, not all LED’s are made the same. A product-neutral company will provide you with LED options that are right for your organization, instead of pushing the specific products from their single distributor.
If you would like more information on a commercial LED lighting retrofit, please call Action Services Group at 800-223-0982 or email email@example.com.
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