LED Lights Lower Lighting Costs

Energy efficiency is a crucial component of a business’ supply chain and bottom line. Using products and practices that are as streamlined as possible can play a significant role in a company’s bottom line. There is always new technology being introduced to the market that can help improve the efficiency of an organization from packaging to bar coding to lighting. Lighting typically makes up half to three-fourths of a warehouse’s electrical needs. For many years, lighting was considered a cost that was somewhat fixed and difficult to change.  With LED lights, however, a company can reduce the amount that they spend on lighting. Plus with the longer lifespan of LED lights, there is less time and resources spent on replacing old bulbs.

Lighting costs

Warehouse lighting costs

When estimating the cost of lighting a warehouse or large facility, it is typically assumed that it will be around $1 per square foot per year. With the energy efficiency of LED lighting, companies can cut that cost by 50% to 90%. For example, a 200,000 square foot facility that was spending an average of $200,000 a year in lighting might be able to reduce their lighting costs to $50,000 a year.

If LED lighting is paired with other energy-saving measures like instant-on, flicker free lights, a company may be able to reduce their lighting costs to as little as $10,000 per year.

Saving energy and money with LED lights

The US Department of Energy (DOE) estimates that solid-state lighting, or LED lights, have the potential to save 1,488 terra watts of electricity between 2010 and 2030. That is valued at over $120 billion. At the same time, greenhouse gas emissions will be reduced by over 246 million tons. That report did not take into consideration all the savings that private businesses and individuals could expect to see, nor did it consider the additional savings of energy that could be achieved by pairing LED lights with other technology like intelligent controls.

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