New Research Report Reviews LED Solutions in Commercial Office, Residential and Retail Applications and Advises Cities to Choose Their Deployments Wisely
NEW YORK, NY, October 1, 2009 — While LEDs (light-emitting diodes) can save substantial energy and maintenance costs over the course of their lifetime, the investment case associated with their adoption is often difficult to discern among the maze of general lighting reports, marketing materials, and strong competition from conventional lighting solutions. In an attempt to provide an independent resource for determining where LEDs offer the most compelling return on investment (ROI), Cleantech Approach’s “Solid State Lighting: Benchmarking Report” benchmarks 250 LED bulbs and fixtures from 23 leading vendors against the most prevalent conventional lighting solutions (incandescent, halogen, CFL, linear fluorescent, and metal halide) in three major end-markets essential to cities’ economies and sustainable energy use (commercial office, residential and retail).
Using a benchmarking analysis that incorporates purchase price, performance (total power, light output, and efficacy), and lifetime cost of operation (including electricity, bulb replacement, and maintenance costs), Cleantech Approach calculated the associated payback periods for these LED products. As a result, the report highlights the end-markets, applications, and conventional solutions for which LEDs currently offer a compelling ROI, and equally important, where they do not. More specifically, the data suggest that while LEDs currently offer compelling payback periods when compared to conventional incandescent and halogen products, they are not yet competitive as replacements for compact fluorescent (CFL), metal halide, and linear fluorescent lighting products.
Cleantech Approach’s report not only suggests that large energy savings can be realized by replacing inefficient lighting – specifically, only currently standard incandescents and halogens — with more efficient LED solutions, but also that the upfront cost premiums of these solutions can be recouped relatively quickly (less than two years) through their associated electricity, replacement and maintenance cost savings. Though the lack of available capital, lower occupancy rates, and the inability to recoup investment costs from tenants has slowed the pace of adoption in the current economy, the rapid pace of LED development will continue to lower costs and payback periods. Depending on the sentiment of their constituencies and the availability of capital, municipalities are in a prime position to hasten the adoption of these technologies by creating effective legislation and financial incentives than can reduce the associated payback periods.
For those who are concerned about investing in the technology too early, Cleantech Approach recommends a phased approach of replacing bulbs and fixtures to capture upfront cost savings now and improvements as the technology develops. This can be implemented across the board from single residential owners to large commercial and retail facilities.
Cleantech Approach will continue to cover developments in the lighting through regular updates of its report.
Cleantech Approach (www.cleantechapproach.com) is an independent research and advisory firm focused on helping municipalities, global development organizations, and private businesses devise sustainable, technology-enabled strategies.
