LED Lighting fixtures are a proven option for many applications. There still aren't as many installations of LED fixtures in warehousing operations or indoor high-bay facilities as there are of flourescent fixtures. The ROI for the flourescent T5 and T8 fixtures continues to be shorter than for LED's. For the company that wants to make the additional outlay of capital for LED lighting, there is a benefit for the long term as LED lights have such a long life compared to any other type of lighting.

For instance, HID lights are good for about a year and then they lose about 40% of their illumination while using the same amount of electricity as when they were new. T5 and T8 flourescent lamps are rated for about 35,000 hours of operation and often last longer, and only lose about 5% of their illumination over their lifetime. The life expectancy of LED lights has to be calculated because they last too long to actually test untiltil failure! They are currently rated at 100,000+ hrs. and lose 0% of illumination. The LED lights cost about twice the initial cost compared to flourescents, but the long term gains are easy to see.

Most of the LED applications so far have been for parking structures, gas station canopies, and outside lighting.

Survey: Lighting Retrofit Revenues Expected to Grow in 2011

As the economy emerges from recession, we expect even more companies will want to invest in energy efficient lighting and substantially lower their electricity costs

Energy efficient lighting industry professionals are anticipating strong business in 2011 as a result of continued investment in energy efficiency projects, according to a survey by Precision-Paragon [P2], a lighting provider. A strong majority (73%) of the energy efficient lighting professionals who responded to the survey said they expect to see an increase in revenue from retrofit projects in 2011. They were similarly positive about the industry as a whole, with nearly 75% of the respondents saying they expect the overall market for energy efficient relighting projects to experience growth in 2011. The survey results mirror the belief of Precision-Paragon [P2], a division of Hubbell Lighting, Inc., that business owners increasingly understand that installing energy efficient lighting can cut their energy costs and corresponding greenhouse gas emissions.

"Companies can see significant savings through lighting retrofit projects, so we expect more of these projects will go forward in the coming year," said Joe Martin, [P2] vice president and general manager. The survey was distributed to more than 1,900 energy efficient lighting professionals, including energy service contractors, energy focused electrical distributors, and lighting retrofit contractors. Most of the respondents said they expect the first quarter of 2011 to be their slowest period, with their busiest time coming in the second or third quarter. One notable sign of optimism among the survey takers: many are planning for increased business as part of their infrastructure strategy. Despite the uncertain economic times, 46% of respondents said they are "building for growth" in 2011. Just 2% said they planned to cut back.

Survey takers also indicated they believe that linear fluorescent lighting remains the right technology for the vast majority of energy efficient lighting projects, with 80% indicating that it was the predominant technology they expected to install in the coming year. LED technology was the second place choice by a wide margin, which fell in line with [P2]'s expectations. "LED is a great technology," explained Martin, "and we've engineered fixtures for the niches where it makes the most sense. But it shouldn't be seen as a replacement for linear fluorescent lighting in most applications." Along with cost savings from energy efficient lighting upgrades, federal support for energy efficiency projects could help to explain the positive outlook among lighting industry professionals. Economic stimulus money has been targeted toward green job creation and the administration's budget proposal for 2011 would increase support for energy efficient commercial buildings. "As the economy emerges from recession, we expect even more companies will want to invest in energy efficient lighting and substantially lower their electricity costs," Martin said.

The available tax deduction is one of the components which can help cost justify the installation of energy efficient lighting. Uncle Sam allows you up to $0.60/sq. ft. tax deduction for the area that is permanently relamped. This means that the fixtures must be hardwired into the electrical system, not plugged in. The overall electrical consumption for lighting the area must be reduced by 50%, which is pretty easy to achieve. Then, an epact certification is produced which is submitted with the customers taxes. Voila! Piece of cake.

Many people think that only the building's owner can take advantage of this tax deduction. NOT TRUE!

If the building is a privately owned building?

• Owner of the asset for tax purposes can claim the CBTD
• Typically the building owner, but may be the tenant(s) if a lease building and the tenant(s) pay for the upgrade; in this case, they would have to agree on who the owner is for tax purposes beforehand
• If two or more taxpayers install energy-efficient property on or in the same building, the applicable total CBTD must be shared among the taxpayers.

If the building is a publicly owned building?

• Person who creates the technical specifications for installation of the energy-efficient property can claim the CBTD, according to IRS Notice 2008-40
• If more than one designer is involved, the CBTD may be allocated by "owner" to the designer primarily responsible for the design or among the designers
• In some projects involving ESCOs, the ESCO is the owner for tax purposes

                          

Parking garages offer some of the quickest return on investment for any lighting upgrade. Take a look at your own building, then notice the other parking facilities that you pass around town. Most of them have the Metal Halide lamp fixtures, even the new garages! These old style fixtures have one bulb which are either 125 or 175 watts, each. If you start looking for them, you will notice that most parking garage lights are on 24 hours a day, 7 days a week. If there is no outside daylight for the garage it makes sense to have the lights on all day. For security purposes it also makes sense to leave the lights on. But, this adds up to ALOT of electricity on a weekly basis.

New fluorescent fixture technology provides more light, at a wider spectrum with a much lower draw of electricity. A common fixture to apply for these garages is a two lamp T8 fixture which is sealed for outdoor use. The Westinghouse VX fixture has a special configured polished spectral aluminum reflector which projects at least 95% of the generated illumination out of the fixture. This is a very efficient use of your lighting electricity dollars. Two T8 lamps use 64 watts total. Right away you have cut your electricity expense by 50-65% and are providing better illumination for the garage. There is an added benefit that the T8 lamps do not diminish in illumination over time, and they are rated for 35,000 hours of use. This means that your maintenence crew will drastically cut down on the frequency of lamp replacements compared to Metal Halide or High Pressure Sodium lamps. Below are some pictures of the VX fixture. Call me and I can put together some specific cost data for an upgrade to your parking area's lighting.

                                   

Save up to 75% or more on your lighting costs

Maximize energy savings and focus light where you need it most with Westinghouse High Bay T5HO fluorescent lighting systems. This revolutionary technology from Westinghouse Lighting Solutions will save your company up to 75% on its energy bills while producing superior light quality. Add occupancy sensors to our instant-on fluorescent fixtures in low traffic areas and boost your savings up to 90%.

The savings are great; The benefits even greater.

Having an efficient lighting system helps your budget in more ways than one. Energy savings positively impacts other business expenses, such as overtime labor, insurance, waste disposal, and equipment maintenance. In the event of a momentary power outage, our instant re-strike capability ensures restoration of lighting immediately, eliminating downtime. Increased productivity and energy savings go straight to your company’s bottom line.

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*Potential annual savings based on 500 fixtures, running 8760 hours at energy rate of $.08 per kwh. Actual savings will be dramatically higher when taking into account transmission and demand charges, taxes and other utility surcharges.

Replace standard metal halide lighting, one for one with Westinghouse High Bay T5HO fluorescent lighting, and start saving up to 75% immediately on your lighting costs.

According to the U.S. Department of Energy, lighting represents 40% of the average commercial building’s electric bill, followed by motors/HVAC (40%) and other equipment (20%).

For years, energy-efficient lighting solutions have been available that can reduce lighting energy costs while maintaining or potentially improving lighting quality. According to the Energy Cost Savings Council, energy-efficient lighting projects generate an average 45% return on investment, paying for themselves in just 2.2 years. Due to energy codes and its economic advantages, energy-efficient lighting is now a common feature in new construction; lighting is generally considered the easiest, most profitable investment in energy-saving building systems. In addition, tax deductions and local utility incentives can significantly accelerate the ROI.

According to the Department of Energy, however, only 20% of existing commercial buildings feature some degree of upgraded lighting technology, while 80% continue to operate lighting systems installed before 1986. The reason typically given is initial cost of changing out an older lighting system and replacing it with a newer one. Energy-efficient lighting typically costs more to purchase and necessitates skilled labor for its installation.

The Energy Efficient Commercial Buildings Tax Deduction was created to enhance the financial attractiveness of investment in the most energy-efficient lighting and other building technologies.

The Energy Efficient Commercial Buildings Tax Deduction (CBTD) is a special financial incentive created by the Energy Policy Act of 2005 and designed to reduce the initial cost of investing in energy-efficient lighting and other building systems via an accelerated tax deduction.

This special tax deduction allows building owners (or tenants) to write off the complete cost of upgrading a building’s indoor lighting, HVAC/hot water and building envelope in the year the new equipment is placed in service, capped at $1.80/sq.ft. Alternately, the owner (or tenant) could upgrade one of these three systems to earn the CBTD capped at $0.60/sq.ft. In short, with the CBTD, the cost of new lighting or other building systems can be claimed in a single tax year instead of amortized over a period of years.

The CBTD expiration date has been extended twice, most recently by the Energy Independence Act of 2007 (EISA). With this extension, the CBTD can be claimed for qualifying projects completed before January 1, 2014.

Tax Deduction Versus Tax Credit A tax deduction is a cost subtracted from adjusted gross income when calculating taxable income; tax liability is not reduced dollar for dollar, as is the case with a tax credit, but instead in proportion to the taxpayer’s tax bracket.

Customizable lighting solutions provide better lighting performance using less energy, fewer lamps, and less maintenance. The lighting pattern and level of illumination can be tailored to meet the work space.

 

 

 

Traditionally large round Metal-Halide lamps have been used in factory and high ceiling areas because they had the ability to project their illumination out a fair distance. Current technology allows for fixture design that focuses and projects the light from fluorescent lamps up to 100 feet away. Factory lighting has previously used either 1000 watt or 400 watt Metal-Halide fixtures. At 54 watts per T5 fluorescent bulb, it's easy to understand how energy savings of 50 to 90% have been achieved. At the same time lighting levels and quality have been improved in the same workspace.