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A Complete Sample Of Led Investment And Its Roi

Light Emitting Diode (LED) innovation has shown to be energy effective, but developing a real number to represent overall cost savings needs more than just comparing an upgraded facilities before and after electric bills. This post will provide a complete sample of figures to examine the ROI for a LED lighting job by calculating your RETURN OF INVESTMENT.

How long would it take you to get your financial back invested into LED conversion?

Equipment costs. Theses days the variety of LEDs to pick from is staggering. The average variety cost from $238 to $510 including lights, mounting hardware and connections (labor is noted independently). Picking a midrange offering, let's say $374 per system.

Depending on the installation, adding surge protection may also be needed. Let's presume for this example an additional expense of $50 per luminaire for the required zero-crossing contractor and overvoltage defense devices.

That makes the total cost $424 per luminaire, or $ 10, 600 total.

Labor costs. The rates for electrical setups vary from about $20 to $80 for lighting installation whether it's fluorescent or LED, and about $25 to $85 for simple changing! Once again sticking to the midrange rates, let us assume $100 in labor for the installation of each contactor and LED luminaire. Given the rates, 25 luminaire labor cost is $2,500.

Adding labor to the devices brings the total installed system expense to $ 13, 100.

Electricity expenses. Electrical power rates differ around the world. The average kilowatt per hour in some parts of America is 8 to 10 cents. In Alaska and Hawaii is $0.21 and $0.27 per hour! Denmark is at the high end, paying $0.41/ kWh usually. India and China are at the other extreme with an $0.08/ kWh national average rate.

In a standard estimation for investment in LED lighting, assuming lower electrical energy rates provides conservative results. For that reason, let us utilize the 2011 U.S. average of $0.12/ kWh to figure out a payback duration, understanding that this includes many variables.

The amount of time the lights are on is another factor that affects electrical energy intake. For this example, we assume a basic work year of 2080 hours, which is approximately eight hours a day, five days a week.

First, compute the LED energy usage. 56 watts per luminaire x the 25 luminaires take in 1,400 watts-- that's 1.4 kW.

1.4 kW x 2080 hours x $0.12/ kWh = $349.44 expense for electrical power per year VS

the conventional lighting which is 4 to 10 times higher, you save $ 2,096 a year (choosing 7x higher)

Calculating repayment period $2,096 a year in electrical energy expense doesn't look much, compared the $13, 100 cost of the sample upgrade. It will take more than six years before the savings in electrical energy paid for the installation of the new LED lighting system.

However, think about these three factors:

-Depending on where you are, the sooner you get you get your investment back. Where electrical power is THREE TIMES more pricey, for example in Germany and Denmark, the payback time is two years.

-The predicted lifespan of LED lighting is quickly four times longer than conventional lighting sources, which considerably lowers repair and maintenance costs, both in regards to labor and replacement devices.

Old lightings are meant for replacement anyway!

For a Free LED Lighting Installation and home automation services, please visit our website Hi Tech Home Pros


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