LED retrofit 5 years period cost- effective analysis for T8 4’ 2 x 32 W fluorescent lamps.

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Aitur Group Ltd , LED retrofit 5 years period cost- effective analysis for T8 4’ 2 x 32 W fluorescent lamps.

*****Assume that a T8 4’ fixture with 2 x 32 watt energy saving lamps operating in corridors/stairwells and etc. for 24 hours, 365 days for 5 years (43,800 hours).

* BC Hydro’s rate will be increased by 17% over 3 years or by 5.4 % in each year.

** BC Hydro’s rate increases are unknown for these years.

Years

 Hours

BC Hydro rate kwh/$

T8 4' tube 2x32W

T8 Annual energy cost $

LED T8 4' 2x18W

LED T8 annual energy cost $

LED Energy savings $

2012

8760

0.1

0.064

56.1

0.036

31.5

24.5

2013

8760

 0.1054*

0.064

59.1

0.036

33.24

25.9

2014

8760

 0.1111*

0.064

62.3

0.036

35.04

27.3

2015

8760

   0.1111**

0.064

62.3

0.036

35.04

27.3

2016

8760

   0.1111**

0.064

62.3

0.036

35.04

27.3

Total for 5 years

43800

    

302.0

  

169.9

132.1

* BC Hydro’s rate will be increased by 17% over 3 years or by 5.4 % in each year.

** BC Hydro’s rate increases are unknown for these years.

In addition to T8 lamps energy costs, there are the following associated costs:
·         Fluorescent T8 tube average life: 20,000 hours
·         Tubes required over 5 years for a single fixture: 43, 800: 20,000 = 2.19 x 2= 4.38=4 tubes.
·         Fluorescent Tube Cost at $3.60 x 4 tubes =$14.40
·         Ballast  life 14,000 h, for 43,800 h/14.000 = 3 ballasts.
·         Ballast cost is $23.00 each x 3= $69.00
·         Labor to change 3 ballast x $45 = $135.00.
·         Lens replacement yellowing &cracking from heat ($8.00 each)
·         Cost to dispose lamps: @ .15c per  ft, 4 ft T8 x.15 x 4 lamps = $2.4
·         Labor to change 4 lamps @ $20.00 =$80.00.
 $ 43.00 cost of the heat load. All lights produce an equivalent amount of thermal heat inside a building as is their stated Wattage.
 
A cooling system with say a 10 SEER (SEER stands for seasonal energy efficiency rating) rating takes 0.31 Watts of electricity to extract every 1.0 Watts of thermal heat.  So, 64 watt x 0.31 w= 19, 84 watts x6 months x 24 hours x 0, 10 $= $ 8.6 x 5 years= $ 43.00. On the heating side, Vancouver, BC mostly heating BTUs from natural gas.
Total Operational Cost over 5 years:$ 653.84
Total Operational Cost per year: $ 130.77
 
***** T8 4’ fixture with 2 x 18 watt LED lamps operating in corridors/stairwells for 24 hours, 365 days for 5 years (43,800 hours).
In addition to LED lamps energy costs, there are the following associated costs:
Ballast: NONE; Replacement labor:  NONE, Lens replacement:  NONE; Disposal: LED bulb can be Recycled
·         LED T8 tube life: 50,000 hours.
·         Tubes required over 5 years for single fixture=: 2
·         LED tube cost at $45.00 x 2 units=: $90.00
·         Labor to change 2 lamps, rewiring the fixture,ballast =$45.00.
·         Investment cost=90.00+ 45.00= $135.00
·         $ 24.00. Heat load for 5 years : $ 24.00 
Total Operational Cost over 5 years :$ 169 +90 + 45 +24.0 = $328.00
Total Operational Cost per year: $65.60
 
Summary:
1.       Total savings over 5 years by utilizing the T8 LED tube = $653.84- $328.00 = $325.84 per fixture.
 
2.       Total annual savings by utilizing T8 LED tube = $130.77 - $65.60 = $65.17 per fixture.
 
3.       Average payback period : $135/$ 65, 17 = 2 years and 25 days.  It could be less/ more depending on the customer’s current                  cost of energy/ BC Hydro rate and existing lighting system.
 
4.       5 years ROI (Return on Investment) rate:Gains- Investment cost/Investment cost x 100 =$ 325.84 - $135/ $ 135 x100= 141% 
 
5.       Material and maintenance /service cost is expected to increase at least by 10% over 3 years.