An Industrial style Induction fixture from Get Green Lighting will cost between $275.00 & $295.00 depending on the qty. One thing I didn’t mention in the article is that I’m also a Master Electrician and have tons of installation experience. We will use a slightly inflated installation figure of $100.00 each. So together with fixture cost you have $395.00 per light. Lamp disposal for Metal Halide lamps hover around $5.00 each, but we will not include this charge considering the fact that the installation contractor will recycle the old fixtures metal parts and ballast receiving about $10.00 each.

     Alright, so we have a cost of $395.00 per fixture which includes installation. This installation cost is unique to our Induction products only. Other lighting companies will sell you the exact same fixture for $450.00-$500.00! Outrageous!  Don’t take my word for it do the research yourself, you will be stunned at the results. The example I provided was a facility operating at with 6,500 hours per year with 100 (400) watt Metal Halide fixtures at the KWH rate of 12¢. For incentive purposes we will add two more details, the square footage of this warehouse facility is 100,000sft. Being from the Buckeye State this facility will be located in Ohio.

   We already know our annual saving will be $21,600.00. We have an installation cost of $39,500.00. So based on this information alone, you would have a simple payback of 1.9 years. Wait!! Were not done yet. Remember this facility is 100,000 square feet, and 2005 Energy Policy Act provides accelerated tax deduction incentives for facilities performing energy-efficient lighting upgrades completed from 2006 through 2013. For lighting system upgrades, building owner deductions are applicable at a rate of $.30 to $.60 per square foot if energy density is 25% to 40% below ASHRAE/IESNA 90.1 watts per square foot levels. Such a drastic reduction in Energy between the old and new fixtures will qualify this for the maximum deduction amount of $.60 per square foot or $60,000. As an Industry standard we only use 33% of this number which is $19,800.00

    You can see our annual savings is rising; now we are at $41,400.00. Were off to the power company, AEP Ohio to receive our $87.50 incentive per fixture for installing Green lighting technology. So multiply $87.50 X 100 fixtures and you get an additional savings of $8,750.00. We are now at an unbelievable annual savings of $50,150.00 which well exceeds the installation cost. We now have a simple payback of 9.4 months. Excluded from this number is the additional savings from HVAC loads due to reduced heat output, also excluded is Utility Company rate increases which can also have a substantial impact on payback period. Lighting upgrades are the best investment your company can make, guaranteed to pay for itself and increase profits. In fact, if these installations are financed properly, the monthly savings generated from the upgrade will exceed the finance payments, providing a positive cash flow with little of no out of pocket expense.

Michael Hale

www.GetGreenLighting.com

Add a Comment