There is no better time than now to upgrade your business to LED lighting with Energeia. As LED technology is getting more efficient, the costs of buying and installing them are coming down. In fact, it is probably more appropriate to say you can’t afford NOT to do a complete LED lighting retrofit.
The business term is “opportunity cost” – the cost of choosing one alternative over another and missing the benefit of the opportunity.
Instead of looking at the costs of installing a quality LED lighting system, let’s look at the opportunity cost of not doing one.
A 60-watt incandescent bulb costs about $7.23 a year to run while a comparable LED bulb only costs $1.56. This translates to a savings of $5.67 a year to light the same area. If you have 200 fixtures using these bulbs, your annual energy bill savings amounts to $1,134 in savings per year. How much longer do you plan to stay in your current building? Ten years? 20 years? No matter how much an LED retrofit costs, it will likely never be as much as the cumulative effect of higher utility bills if you continue with conventional lighting.
Let’s say the same LED bulb from the above example has a price of $12 and an average lifespan of 22 years. The incandescent equivalent will cost about $2 per bulb and last ten months. Since lights don’t all go out at once, you also need to factor in the increased labor hours required to replace burned out bulbs and ballasts for traditional lighting technologies. And if your facility is large enough, replacing bulbs may be a job for a full-time employee.
Lost opportunities for other expenses
What are the other future costs for your business? Do you need to resurface your parking lot or do you need a new roof? These are sunken costs of doing business and they won’t save or make you any money in the long run. If replacing your existing lighting saves your business $20,000 per year, this can be used to pay for your other expenses.
Upgrading to LED lighting can put 30% of your electricity budget back into your cash flow and every day you haven’t upgraded is a day of efficiency savings lost. The energy efficiency of LED benefits your business in the short and long term. As a business owner, it is obvious that you should look at the cost of doing an LED upgrade, but it is also good business sense to look at the expense of not doing one.
Energeia excels in offering cost-effective LED upgrades to rid your facility of inefficient, expensive lighting. We will do a walk-through to get to know your facility and learn about how you currently handle your lighting—we want to know the ins and outs of how you utilize your energy so that we can provide better service and help you achieve a positive cash-flow after we install LEDs.