LED Lighting Electricity Cost Savings – Solux
Conversion to LED lighting presents one of the richest cost-saving opportunities available to schools, care homes and businesses. When the WeBenefit analysis team worked through the operating costs of hundreds of schools, care homes and NPOs, they quickly identified electricity costs as both being material and potentially offering the most significant cost savings opportunity.
In the past, the barrier to the widespread use of efficient LEDs for lighting has been the high upfront cost. However, advancements in technology have dramatically lowered prices and LED lights that deliver high-quality light that will last a decade, are now common. Just imagine not having to replace a globe for more than ten years! It will also eliminate a tremendous amount of physical and often harmful waste.
In developed countries, the adoption rate of organisations across many industries is as high as 90%. For example, Forbes reports: “In 2016, Lodging found that 90% of hotels are implementing high-efficiency lighting and half of larger hotels have already implemented a whole building Energy Management Systems”.
This is to be expected from a technology that replaces a 130-year-old technology (incandescent globes) and reduces electricity consumption by as much as 80%. No significant barriers or risks remain for full adoption, and we want to help schools, NPOs and businesses to fully understand and convert to this fantastic technology.
WeBenefit has invited Solux, one of the leading LED energy savings companies, to help schools, care homes, NPOs and business to reap the enormous benefits that complete conversions to LED lighting offers.
The savings potential we have so far witnessed ranges between R100 000 and R450 000 per annum for schools and care homes. Payback periods of less than two years are typical. What we also hear from every site is how much the lighting improves, and that maintenance decreases to practically zero. More than 90% of the existing light fittings do not have to be replaced which contributes to the strong business case.
As stated above, LED lights, when properly designed, last well over ten years. In Solux’s case and one of the reasons why we selected this supplier, the lights are designed in Germany, are certified by the German TUV standards agency, are rated to last 50 000 hours and are backed by 3-year warranties.
The capital cost of a complete conversion to LED lighting is not immaterial. Now schools, care homes, NPOs and businesses can tap into the significant cost savings potential even when they have earmarked their cash resources for other projects as Solux’s offers a 3 or 5-year Rent-To-Own financing option, in partnership with well-known financial institutions.
With monthly savings far higher than the monthly rental payments, overall cost savings from LED lights remain material. In effect, the project will be funded from monthly savings in electricity costs which outweigh the rental fee by a considerable margin.
The following table summarises the other significant benefits of this new lighting technology.