LED retrofits offer compelling energy savings, but clients need to see the numbers. Here's how to calculate and present the ROI.
Basic ROI Formula
Payback Period = Project Cost / Annual Savings
Calculating Annual Savings
- Count existing fixtures and their wattage
- Determine operating hours per year
- Calculate current kWh usage
- Calculate new kWh usage with LEDs
- Multiply savings by your client's kWh rate
Example Calculation
100 fixtures × 150W (existing) × 4,000 hours = 60,000 kWh/year
100 fixtures × 50W (LED) × 4,000 hours = 20,000 kWh/year
Savings: 40,000 kWh × $0.12/kWh = $4,800/year
Don't Forget Utility Rebates
Many utilities offer $10-50 per fixture rebates for commercial LED retrofits. This can cut payback period in half.
Maintenance Savings
LED fixtures last 50,000+ hours vs. 10,000 for fluorescent. Include reduced lamp replacement labor in your ROI calculations.
Get Started
PES Supply offers free lighting audits and rebate processing assistance for commercial LED retrofits. Contact our lighting specialists today.