How LED Lights Save You Money

We all heard about the wonders of LED lighting and how it can impact the bottom line. But how exactly do we figure out the savings? Our goal for our customers is to reduce the lighting energy or the total kWh used in your facility through the use of LED lighting upgrades. By upgrading to a LED lightingsolution we can reduce your light energy usage by 40 to 97 percent depending on the application.

What exactly is a kilowatt hour?

To help you get a basic understanding of your energy bill, let’s review what a kWh and a kW is.
In its strictest sense, energy is not generated or used, but converted from one form to another form. For example, energy that is trapped in coal is released when it’s burned and then that energy is converted into electrical energy which is then converted into light energy. A kWh is a measure of energy, while a kW is a measure of power. Electricity used over time is measured in kilowatt hours. A kilowatt hour is a measure of power equal to 1,000 watts, or the amount of energy you get from one kilowatt for one hour. LED Lights are in its simplest form a light emitting diode that creates a large amount of light using much less energy than a traditional light source such as a Metal Halide, High Pressure Sodium, Fluorescent or Incandescent lamps. Let’s look at a comparison of a 400 watt Metal Halide High Bay and a LED High Bay Luminaire below.

400w-metal-halide Lusio-LED-Essentials-4-Bay-Luminaire
A traditional 400w metal halide actually uses 457 watts after you figure in the ballast Above is a Lusio LED Essentials 4 Bay Luminaire. It uses 238 watts, a 52% reduction in watts

Review of a real life example of upgrading 400w Metal Halides with Lusio 4M’s.

If you look at the wattage reduction by upgrading to LED’s over multiple fixtures and time, the savings can be tremendous. Let’s look at a basic example by taking 20 of the 400w metal halides at 457 watts in a factory setting that operates 16 hours a day, six days a week and replace them with 17 of the Lusio Essentials Bay 4M’s
Current fixtures below


The above analysis shows the kWh savings per year to be 21,864 with a total operational savings of $44,073 over a ten year period based on an initial investment of $15,231. Imagine what the savings can be if you have 100, 400w metal halides.

In simple terms WATTS = DOLLARS and the less you use the more you will save!

How do we find out how many kWh’s you are using?

To understand the portion of your energy consumption that is attributed to lighting, first we must do a physical audit of your premise and record the wattages of your fixtures. There are 4 factors that determine the amount lighting energy being used:

  • Bulb/Lamp Wattage
  • Number of Bulbs/Lamps per fixture
  • Fixtures per location and space
  • Hours of Operation -The amount of hours the lights are on in each location

The combination of the 4 will determine the exact kWh your fixture uses on an annual basis. An audit from one of our qualified auditors will allow us to determine what percent of your electric bill is currently attributed to your lighting. 25% to 40% is typical, but as high as 80% is common for warehouses and storage facilities.

For example, for us to figure out exactly how much of your energy bill is attributed to lighting we do the following calculation.
Fixture Quantity x Fixture Wattage = Total Watts
Total Watts / 1000 = Kilowatts
Kilowatts x (Hours of Use) = Kilowatt/Hr.
Kilowatt/Hr. x (Cost of Energy) = Annual Cost

Once your audit has been completed, we input the information into software specifically designed to calculate your current kWh usage based on your current lighting and hours of operation. When we design an LED solution for your facility, we use simple mathematics to deduct the wattage from your current system and replace the wattage with our proposed solution.
In other words:

We take the existing KW
Subtract the new KW

Multiply this by the hours of operation and the rate of electricity and you will get a dollar figure. The chart below illustrates the typical savings attributed to a shopping mall parking lot. As you can see, the annual savings from lighting alone can put a significant portion of your money back in your pocket.