LED versus Fluorescent

What is the cost of sticking with fluorescent lighting?

GMI Energy I www.gmienergy.co.uk I energy@gmienergy.co.uk I tel: 0113 819 9777 I fax: 0113 276 0180

Do you have a shed or building with fluorescent light fittings? Have you considered the savings that LEDs can bring compared with the cost of doing nothing and sticking to fluorescent lights?

To highlight the benefits here is a worked example from a livestock shed. The calculations assume the lights are in use for 15 hours per day and also take into account a conservative annual energy inflation rate of 3.5%. In reality the savings may be higher because we can expect electricity rates to increase far more than this over the coming years.

Existing fluorescent lighting Proposed LED linear lighting

System type 40 x 58W fluorescent strip lights 40 x 20W LED lights

Annual running costs (electricity) £1,572.82 £549.29

CCL costs £84.27 £29.43

Re-lamping costs £167.96 £0

Total annual costs £1,825.05 £578.72

The above table shows the annual running costs for the first year.

The chart opposite shows how the running costs increase as electricity rates, CCL and re-lamping costs increase. We have calculated the costs over a 9 year period because this is how long we would expect the new LED fittings to last.

The annual running costs are significantly lower with an LED system. The re-lamping costs are reduced because the lifespan of LEDs is far greater and the CCL costs are reduced becuase the LEDs are more efficient. However, The main proportion of the savings is from the reduced electricity consumption of the low-energy lights.

These running costs do not account for the initial capital expenditure so no lets take a look at the cost of making the switch to LED...

For this particular scheme, the captial cost of the proposed lighting would be £4,960 including installation costs.

Enhanced Capital Allowances

LED lighting is eligible to receive 100% tax relief in the same year that the purchase was made, allowing the business to write off the whole cost of the equipment against taxable profits. In this instance the Enhanced Capital Allowances amount to savings of £1,289.60.

GMI Energy I www.gmienergy.co.uk I energy@gmienergy.co.uk I tel: 0113 819 9777 I fax: 0113 276 0180

LED versus Fluorescent

What is the cost of remaining with fluorescent lighting?

The chart opposite shows the annual savings and balance (cumulative revenue) from the new lighting system.

After two years the system has paid for itself and will generate significant savings.

Over 9 years we would expect the system to achieve savings of £14,207.85 after install costs. The initial outlay for an LED system is more than traditional fluorescent strip lights, however, the potential savings make it a very worthwhile investment and that’s just the running costs. Below we have highlighted some of the other benefits of LEDs.

Benefits of LED lighting

LEDs are far more durable than incandescent and fluorescent lights; we can expect LEDs to last for typically 50,000 hours, with many lasting up to 80,000 hours, while incandescent or fluorescent lights typically offer a 10,000 hour lifespan. LEDs are suitable for a wide range of environments; they offer safer lighting levels in factories and warehouses and a more ‘natural’ light in livestock sheds and horticulture where they are even believed to enhance production.

LED stands for Light Emitting Diode, which is a solid-state semiconductor light source. LED lighting is a popular choice of low energy lighting because it offers exceptional energy saving properties. The main advantage is the high luminous efficiency which was 18-22 lumens per watt in 2002, compared to conventional 60-100W incandescent light bulbs which only emit around 15 lumens per watt.

The development of LED technology has caused their efficiency and light output to rise exponentially with a doubling occurring approximately every 36 months since the 1960s. in 2011 LEDs reached a new level of efficiency emitting 450 to 650 lumens from a 6W LED. This output is equivalent to a 40W incandescent bulb and a typical 13W LED in 2009.

ü Easy to install

ü Provides sufficient light without flicker or glare

ü Save up to 80% on your electricity bills

ü Choose from a range of flexible lighting options

ü More durable than incandescent bulbs

ü Cool to the touch - reduce your fire risks

ü No UV or infrared light emitted

ü No hazardous mercury components