The world is facing a significant challenge with climate change. The only way to slow down earth’s warming is to aggressively decarbonize global economies and our daily lives. The united Nations has defined Sustainable Development Goals, with climate action being one of them. Per the 2019 Climate Action Summit, the United Nations Secretary called on all leaders to reduce greenhouse gas emissions by 45% over the next decade, and to net zero emissions by 2050..
The energy industry is experiencing a transition to a more sustainable future, shifting from fossil-fuels to renewable resources and lowering carbon emissions. Sustainability initiatives expand into water use, noise levels, emissions during production, emissions produced by customers using others’ products, and a reduction of carbon footprint of products sold.
The industry needs to make significant capital investments now as the current mix of technology prevents it's ability to meet the Paris agreement's carbon neutrality goals. That is why today’s corporations and government entities have multiple sustainability initiatives to reduce carbon emissions, lower global warming to become better stewards of the Earth and its natural resources.
There is an immediate opportunity with lighting to make a significant impact globally.
Per the Department of Energy, Energy Savings Forecast of Solid-State Lighting in General Illumination Applications report, LED lighting has saved over 1.1 quadrillion BTUs of energy in the United States since 2017.
The Department of Energy currently projects that by 2035, LED lighting will be 84% of all lighting installations. It is also projected that most of the growth over the next 15 years will be from commercial and industrial applications. It is currently estimated that LED light fixtures are installed in approximately 30% of the facilities in the United States. There is still a large install base of conventional lighting that can provide immediate energy savings to the industry.
For over 100 years, Eaton has been delivering safe, reliable, high quality Crouse-Hinds series lighting solutions for industrial applications.
Light Emitting Diodes (LEDs) are the latest lighting technology developed for use in industrial light fixtures. Overall, LED light fixtures are more energy efficient, have a longer life, provide higher quality of light and a lower total cost of ownership compared to HID light fixtures.
Since 2008, Eaton has been manufacturing Crouse-Hinds series LED light fixtures for a wide array of industrial applications ranging from natural gas facilities in Australia to space shuttle launching pads.
In fact, Crouse-Hinds series LED light fixtures are 70% more efficient than traditional HID lighting. Crouse-Hinds series LED light fixtures provide customers with light fixtures that are brighter, more reliable and longer lasting.
Therefore, with energy efficient Crouse-Hinds series LED light fixtures, our customers can reduce their carbon footprint.
Scroll down to learn more about: Why LED technology reduces CO2 emissions? | Calculating LED Light Fixture Return on Investment | Understanding LED lighting ROI details | Debunking LED lighting myths
By using LED technology in industrial lighting applications, customers can reduce their CO2 emissions and support their sustainability plans.
Additionally, LED technology has a highly valuable return on investment (ROI). The initial investment of an LED installation is usually higher than traditional lighting technology. Therefore, it is important to estimate the savings over time and total cost of ownership to validate an LED solution.
This article considers the ROI in terms of how much money can be saved by selecting an LED light fixture for a lighting installation. The end user should also consider other aspects of the project that may impact overall cost of the investment. For example, this may include carbon footprint reduction, possible rebates for using LED technology and future availability of spare parts .
ROI should be estimated before starting a project or to evaluate selecting LED over current traditional technology.
Calculating a ROI requires the initial investment (CapEx) and operating cost (OpEx) of the lighting installation and application.
To estimate CapEx, the following parameters are required.
When estimating CapEx, it is important to compare the use of LED technology with the equivalent traditional lighting alternative.
For estimating OpEx, the following parameters are required.
Typically, when comparing traditional lighting technology and LED lighting, only the lifetime of the light source is considered. In this case, LED has a longer lifetime compared to a conventional lamp.
As a result, the underlying question for the ROI becomes –
How often does the conventional light fixture need to be maintained before the LED fixture reaches end of life?
Lighting installation cost can be calculated as a function of the operation time (t).
The formula for this estimation can be described as:
Cost (t) = number fixture* (Capex + Energy (t) + maintenance (t))
Where: Capex considers the initial investment and is calculated as:
Capex = quantity * (product cost + installation cost) + others - rebates
Where: Energy(t) considers the energy consumption over time and is calculated as:
Energy(t) = power * time(t) * energy cost /1000
Where: Maintenance(t) consider the cost for replacing the conventional light source and is calculated as:
Maintenance(t) = if (t) > n* lifetime à maintenance(t)= n * (cost spare + time for installation * cost per hour of installer * number of installers)
For an example in North America we make the following assumptions:
Therefore, if a customer installs 1,000 Crouse-Hinds series VMVL-7-UNV1 light fixtures to replace the same number of 150W high pressure sodium light fixtures, they can save approximately 1.2 million kilowatt hours of energy per year (Over $100,000 in annual savings), 369 tons of carbon dioxide emissions, and 184 tons of coal emissions. That is the is the equivalent energy of 42 million smartphones being charged, and 179 fewer cars on the road. (Source EPA greenhouse gas equivalencies calculator)
In this section, we review an example for estimating ROI in a 1:1 replacement scenario.
Performing a 1:1 replacement is the fastest method to estimate ROI and provide the the ability to compare the CapEx and OpEx costs between LED and traditional lighting.
For example, the following features a comparison between a 150W high pressure sodium light fixture and a Crouse-Hinds series VMVL-7-UNV1 LED light fixtures. Note: Unit prices are indicative only.
Model |
150W HPS Light Fixture |
54W LED Light Fixture |
Number of light fixtures |
1000 |
1000 |
Power |
188W |
54W |
Lifetime [4] |
L50: 24,000 hours |
L70: 100,000 hours |
Unit price |
$300 |
$850 |
Operation hours |
24h/day, 365days/year |
|
Installation time |
1 hour |
|
Cost of installer |
$80/hour (2 people) |
|
Energy cost |
$0.09/kWh |
A few key conclusions from the graph:
Taking this into consideration, the ROI shows that the initial additional CapEx on LED is recovered due to lower OpEx after 2.4 years.
Therefore, upgrading 1,000 HID light fixtures to LED would save approximately $1.3 million over the fixtures’ lifetime.
As conventional lighting obsolescence accelerates, industrial users need to familiarize themselves with key differences between conventional lighting and LED:
Myth 1: LED Efficacy is the LED’s lumens divided by wattage; it is not a system measurement.
Answer: The efficacy of a LED light fixture is measured fixture lumens/ input wattage. The measured lumens include the light loss from optics, thermal performance and the energy loss from the driver. Eaton’s Crouse Hinds series LED fixtures currently have efficacy levels of over 100 lumens/watt, which are best in class in the industry.
How it really works
An LED light fixture is comprised of 4 different elements:
Myth 2: Lumens vs Foot-candles/Lux (Matching lumen output of LED to traditional lighting)
Answer: The true measure of light fixture performance is foot-candles/Lux
How it really works
Traditional lighting (HID, incandescent or fluorescent) lumen output is provided using lamp lumens. Then to properly calculate the lumen output in the traditional light fixture, it be combined with the ballast factor of the light fixture. A typical HID ballast is 88% efficient.
After calculating the relative photometry using the ballast factor, light loss from the globe is added to the calculation. A typical HID globe is approximately 70% optically efficient, which further reduces the traditional light fixture's lumen output.
Finally, traditional lighting is omnidirectional. Therefore, the light fixture provides light in 360 degrees both vertically and horizontally (side light and up light).
As a result of these inefficiencies, approximately 40% of the lumens created by a traditional light fixture are targeted towards the work plane.
LED light fixtures provide directional light, which means that 100% of the lumens are directed towards the work plane. Therefore, the most suitable method is calculate the the desired footcandles/lux for the application with the LED light fixture that meets the performance requirement. The Crouse-Hinds series Lighting Layouts Team provides a service that contains this information.
Myth 3: Rated Life vs. Economic Life of the LED Light Fixture
Answer: Rated Life is the estimated lifetime of the driver in maximum ambient temperature under 24/7 operation.
Economic Life is the estimated lifetime of the fixture beyond the rated life.
How it really works
The LED & driver lifetime are both used to estimate the LED light fixture’s life.
LED lifetime is measured using L70, which is the moment in time where the LED loses 30% of its initial light output.
Driver lifetime uses Mean Time Before Failure (MTBF) which is the moment in time when the driver achieves catastrophic failure.
Crouse-Hinds series LED light fixtures have a rated life ranging from 50,000 – 60,000 hours. Therefore, a LED light fixture with an L70 of 100,000 hours and a driver life of 60,000 hours would have a rated life of 60,000 hours.
Additional environmental factors to consider regarding lifetime:
The global challenge around climate change has driven energy transition goals across the industry. LED lighting presents an immediate opportunity to address your sustainability goals. Crouse-Hinds series LED lighting solutions are the ideal solution to contribute to reduce energy consumption, lower maintenance and operating costs, and become better stewards of the environment. Additionally, as traditional lighting technology obsolescence accelerates, more end users will upgrade to LED, enhancing the positive environmental and economic benefits through LED technology. To learn more about Eaton Crouse-Hinds series LED lighting, go to www.eaton.com/lighting.
Crouse-Hinds series LED light fixtures are 70% more efficient vs. HID, resulting in brighter, reliable, long lasting solutions to help reduce CO2 emissions. Download the full length white paper to learn more.
Energy Savings Forecast of Solid-State Lighting in General Illumination Applications | LED Adoption Report | Department of Energy | Market Studies | Department of Energy | Greenhouse Gas Equivalencies Calculator | Energy and the Environment | US EPA | Energy – United Nations Sustainable Development | 2019 Climate Action Summit to combat climate change and it's impacts