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What’s the return on investment of a lighting upgrade?

By July 26, 2017 No Comments

Facilities Managers, Sustainability Managers and business owners often ask us, if there’s a co-payment required during a lighting upgrade, how long will it take to see a return on initial investment (or payback period)?

Warehouse owner plans to upgrade his lights to LEDMany businesses will see a return on investment in a matter of a few months! It really can be that quick. But ROI periods do vary business to business based on a few factors, but so here’s an example of the costs a business might face and the period of investment they can expect.

Here’s an example of a return on investment period for a warehouse

Energy Makeovers’ customer ‘James H’ is the Facilities Manager at a Warehouse in the Western suburbs of Melbourne. His warehouse has:

50 highbays + 200 fluorescent tubes to upgrade

Each LED highbay will require a co-payment of $29 and each LED tube $4.95. Installation fee of $195 and Scissor lift at $165 are added. The total cost for James’ business is $2,347.

Here’s a breakdown of the costs including VEEC subsidies to the business.

LED lighting proposal summary

The warehouse lighting costs per year are currently $27,980 with their energy-hungry lights.

Also factored in are the costs of maintenance on the outdated lights including replacing them every 4 years with 400w Mercury Vapour bulbs at $30 per bulb, scissor lift hire at $400 for 4 lamps, or $100/lamp and electrician costs of $50.

With a change to new LEDs their lighting costs will plummet to $6,113 a year! This is a huge saving of $21,867 a year and means that they will see return on investment after only 2 months!

Estimated savings from a commercial lighting upgrade

The ROI period of a commercial lighting upgrade

Depending on the business or property being upgraded the VEEC scheme offers varying VEEC rates, so contact Energy Makeovers to discuss what options are available for an upgrade at your business.

Complete our online form and we’ll call you for a quick quote for an upgrade on your business. Or give us a call 1300 788 776