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LED Lighting Return On Investment



As many of you know, the big draw to LED lighting is the fact that they pay for themselves. By reducing energy consumption and lowering maintenance cost, an LED retrofit will save enough money that the job will be paid back in full. It’s always great when a customer can really see the benefits of making the change to LED lighting.

I got an email from a gentleman who was the chief engineer at a large hotel in South Florida. He was interested in landscape lighting for the front entrance and pool area. I called him up and scheduled a meeting, drove down to his hotel and started the survey. We walked around the hotel and discussed his options with landscape lights. I had a few samples I was able to show him. It was looking to be a big job.

As I walked through the lobby and hallways of the hotel, I noticed it was using only halogen MR16 Lamps. Up to this point, nothing had been mentioned about retrofitting the MR16s to LED. I told him about the saving he could achieve by switching to LED lighting and he had mentioned to me that he had never even thought LEDs were an option.  I was able to find out that he was using 350 35-watt halogen MR16s that were burning 24 hours a day. But at the end of the day, he made it very clear that the landscape lighting was the main focus. I finished the meeting and told him that I would get him the estimate.

With the MR16s still on my mind, I went back to the office and began working on the ROI for just the MR16s. This hotel’s ROI on only the MR16s was incredible. By switching to LEDs, they would pay for themselves in 4 only months. So I decided to do two separate estimates. The first one was with just the landscape lighting as requested by the engineer, and the second was the landscape and MR16s. By retrofitting both the landscape lighting and the MR16s, the ROI was about 9 months. I presented the estimates to him in this fashion. Needless to say the engineer was floored. It changed his whole outlook on the project. All of a sudden the job went from $9,000 to $20,000 and they get a far better Return On Investment.

Being able to show a customer the money-saving potential of LEDs along with the ROI is what makes the sale. With the massive energy reduction, virtually no heat output, and long life span, LEDs are the best return on investment.

For more information on LED lighting, contact the LED lighting experts at LED Source 866.900.4533.



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