The use of more energy efficient LED lights to replace incandescents and fluorescent lights has reduced total carbon dioxide emissions by an estimated 570 million tons in 2017, according to a report issued by IHS Markit, or by 1.5%.

LEDs achieve this because they are more efficient than current light sources, using, on average, 40% less electricity for the same amount of light compared to fluorescents and about 80% less electricity than incandescents. An incandescent filament source needs about 7 watts to produce about 100 lumens of light. A fluorescent source needs about 2 watts to produce the same light. Metal halides and high-pressure sodium bulbs about 1 watt. LEDs, however, can produce this same amount of light using just 0.5 watt. Given this differential at many thousands of facilities, encompassing hundreds of thousands of light sources, that is many megawatts of power not needed and, therefore, all the more oil or gas or coal that needs to be combusted to make that power. Thus the major reduction in CO2 emissions.

Although LED lights are more expensive than current light sources, these electrical reductions make converting to LED lights quite economical, “low hanging fruit”.
Initially, there was objection to LED lighting based on their inability to be dimmed or the quality of light not being complementary to certain uses. But in time, these issues have been resolved, and LED lights today are dimmable and can have its intensity altered.

Upcoming Trends

Case studies have shown that spaces lit by the right LEDs have a whiter or higher quality of light, resulting in better worker productivity and better school performance. More vendors are specializing in such LEDs that will more likely result in better performance as their way of separating themselves from the pack.

Another item that has been driving the LED market is government or utility incentives. Such organizations have paid some of the upfront cost to building owners willing to change out large quantities of lights because this represents a relief to a stressed utility infrastructure. However, as LED light prices have been coming down, these organizations realize that the pure economic benefit of a building upgrading their lighting with LEDs is great enough; incentives will not add that much to the fine payback LEDs result in. The trend in utilities is to use incentive funds for other, more expensive energy-saving technologies and less for LEDs.

Finally, LEDs were initially more popular in states like NY, NJ, CT, MA, and CA, partially because energy-saving and greenhouse gas-reducing is part of their cultures, but also because the economics were better there because electric rates are higher in those states than in others. However, with more competition and the further drop in LED prices, even in other US states where electric usage rates are lower, converting to LEDs makes a lot of sense financially. Expect to see sales rise in the Midwest and the South.

CCES has the experts to help you assess whether now is the time to convert to LEDs for your commercial space. We can evaluate potential savings, payback, and IRR for you to determine if this is the right time. If you go ahead with a conversion, CCES can manage the project for you, saving you time to concentrate on other things, while ensuring that anticipated cost savings and other benefits are achieved. You reduce cost without the hassle. Contact us today at 914-584-6720 or at karell@CCESworld.com.