Return on Investment
Do you care about return on investment?
Let’s calculate based on an example project!
Let’s assume this project needs 50 pcs High Bays Retrofit.
|Traditional Lamp Source||400W MH|
|What is the quantity of luminaires ?||50pcs|
|Cost of replacement lamps in ($)||$5|
|Cost of disposal per lamp ($)||$5|
|Time per fixture for lamp maintenance (Hours)||2hrs|
|How many people are required for lamp maintenance ?||1|
|Labor rate ($ per Hour)||$75|
|What is the energy cost on site ?||$0.2|
|Lighting hours of operation per day||10|
|Operation days per week?||6|
|Lift Rental, Scaffolding Costs, Contractor Costs, Ect||$500|
|Estimated Tax Rebate Per Fixture (if available)||0|
We will use 120W Atom LED High Bay Light to replace 400W Metal Halide. If you don’t know how, please \contact us!
Before we do the calculation, we need to know these:
The existing 400W metal halide fixtures draw 456W (including ballast consumption).
Use the fully loaded labour rate. Many Harsh and Hazardous locations require 2 person teams
Be sure replacement time includes time for approvals, down time, paperwork, lock out tag out, man lift, etc.
If you work 8 hour shifts, don‘t forget to add an hour at the end and a hour at the beginning of the day. We often find that there is usually someone there early and late, So you want to take all factors into consideration
MH Yearly Energy Costs:
0.456kW X 50pcs X 3120hrs/py X $0.2/kw= $14227.2 per year
Atom LED High Bay Yearly Energy Costs:
0.120kW X 50pcs X 3120hrs /py X $0.2/kw= $3744 per year
Yearly Saving at Energy:
$14227 – $3744 = $10483 per year
MH Yearly Energy Costs $14227
LED Energy Yearly Costs $3744
Yearly Energy Saving $10483
So you’re saving $10483 per year. NO! You are making $ 10483 per year
Don’t forget that we haven’t considered conventional HID maintenance costs saving yet.
Oops! We forget to consider conventional HID maintenance costs saving!
You will agree most of projects could be paid back in less than 2 years if you have got the Atom LED high bay price.