LED Retrofit Financial Analysis Tool
The Office of Energy Efficiency & Renewable Energy working in conjunction with the DOE Municipal Solid-State Street Lighting Consortium, the Clinton Climate Initiative (CCI)/C40, the Federal Energy Management Program (FEMP), and DOE Better Buildings, created a Street and Parking Facility Retrofit Financial Analysis Tool. As an example, this tool provides an avenue for analysis of the costs and benefits associated with street and parking facility lighting efficiency projects. Conversely, the tool utilizes life-cycle cost (LCC) analysis, tracks price, and benefit throughout a specific period. Meanwhile discounting future cash flows to present value, using a user-specified discount rate. In short, the use of such discounting captures the time value of money.
- Capital costs, net of rebates (including discounted capital costs, if a project’s implementation is to occur over multiple years)
- Present benefits of annual electricity costs for both base and retrofit cases
- Current values of yearly maintenance costs for both base and retrofit cases.
Subsequently, the tool also provides (among other outputs) a standard non-discounted financial metric. Likewise, simple payback (the number of years required for savings to offset initial outlays), as well as the internal rate of return (IRR). In other words, the discount rate at which the NPV is zero.
Other outputs reported include:
- Annual energy and energy cost savings
- Annual greenhouse gas reductions
- Up to 15 years of yearly detailed cash flow data
- Average annualized energy and maintenance savings per fixture.
In conclusion, the above information and the below analytics tools were provided by www.energy.gov.
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A Before and After Comparison of a LED Parking Lot Retrofit
Most importantly, the customer reduced their energy consumption by more than 60% and had a 20-month ROI.
Firstly, Action Services Group provided a full turn-key LED lighting retrofit solution. Secondly, we helped select the right product to meet the customers priorities for a successful retrofit.
Other LED Parking Lot Retrofit Resources
To summarize, once you wrap your mind around the actual cost savings. In short, your organization will benefit from when you retrofit your parking lot lighting to LED. Lastly, you are going to want to move on to the next step. Meanwhile, here are a few other resources you are going to want to review.