Owners and asset managers still struggle to justify light-emitting diode (or LED) lighting renovation projects. Worse yet, the responsibility is considered a maintenance issue rather than a capital improvement. Ever walk into a building, experience multicolor light sources, dark corners and glaring white lights over computers? This results from replacing LED bulbs in existing fixtures from a local electrical store. It is expedient and cheap. It will reduce energy costs but fails to deliver on the numerous performance benefits on offer. Take notice, as this approach immediately degrades the building environment. Doing it correctly, however, only takes a dash of skill, basic math, and a reasonable and fully recoverable budget. These few simple steps can significantly transform and improve the building environment, reduce one’s carbon footprint, enhance worker productivity, and help save our planet.

More complicated facilities, such as power plants, water systems and other industrial facility applications, must be able to bear their physical operating environments. These nasty places require explosion-proof and waterproof fixtures to withstand the rigors inside their building. Proper light levels and light color temperature are mandatory to avoid accidents, reduce fatigue and improve overall productivity. In fact, studies show light levels that mimic natural daylight can significantly improve learning, productivity, mood and energy level, leading to improved workplace morale.

ENVIRONMENTAL IMPACT AND SUSTAINABILITY

Unlike light-bulb replacement, LED lighting-system renovations are value-added building-project improvements. Once completed, the workspace is environmentally friendly — free of harmful chemicals such as mercury as well as UV radiation emissions, and experiencing reduced heat. Earlier bulb technologies were metal halide, incandescent and fluorescent; LED is a solid-state technology that reduces the overall carbon footprint. Half of our carbon footprint is from electricity generation, and 17 percent is caused by existing lighting alone. Retrofitting older buildings is an opportunity to remake and customize the workspace so occupiers can better perform their tasks. This takes planning, with an understanding gained through photometric light measurements throughout each area of the building.

LOWER OPERATING COSTS

In 2017, LED lighting adoption in U.S. buildings was 12 percent, up from 1 percent in 2012. LED bulb replacements alone can only provide incremental energy and maintenance savings, while new fixtures with controls can reduce lighting expenses by up to 70 percent. Choosing various LED bulb types without regard to corresponding lumen-per-watt output, however, creates noticeable light-temperature variation throughout the building.

LED lighting technology is constantly improving to deliver greater illumination with the same or lower wattage. This enables property owners to replace fewer LED fixtures for the same light-quality levels. When measured in lumens per square foot, the number of fixtures required is reduced as part of the renovation. In addition, the cost of LED lighting fixtures continues to decline as technology advances. Owners also can take advantage of LED lighting renovations because utilities are still offering rebates, and the enacted tax bill may qualify the project for 100 percent bonus depreciation based on one’s eligibility.

Thus, the cost of LED lighting projects and the related return on investment are quickly calculated based on a few data points. Typically, LED lighting projects break even within two to five years. Afterward, owners and occupiers continue to enjoy 100 percent of the savings and the improved environment for years to come. Before you embark on a cheap LED bulb-replacement project, think of all those who would have to endure the substandard result.

Philip Alfieri is president and CFO of Green Asset Energy Solutions.