Declining costs driving adoption of LEDs

25 Oct 2016

Posted in General by Net Zero USA

LED lighting is transforming the illumination of facilities all across America according to a recent U.S. Department of Energy (DOE) report.

Revolution Now 2016 Update takes a hard look at renewable energy and energy efficiency technologies, including LED lighting products, that are helping America make a transition to a cleaner, lower carbon economy.

DOE found that total installations of A-type LED bulbs exceeded 200 million during 2015, growing 160% over 2014. DOE expects LEDs will account for 85% of all lighting installations by 2035. They also predict that the efficiency of LEDs could double again with aggressive research and development.

doe-chart-of-led-costs-and-installations-since-2008

Why Is LED Lighting Becoming So Popular?

#1 Costs have fallen rapidly

According to the report, LED lighting costs dropped by 94% since 2008. LED package prices declined to approximately $1/klm by 2016, resulting in dramatically reduced LED lamp and luminaire prices. Improvements in manufacturing have enabled LED products to achieve a low enough cost that there has been measurable LED adoption in all general illumination applications.

At the same time, many power utilities in the U.S. are offering various LED lighting rebates & incentives to encourage adoption of the technology. These programs further decrease the overall cost to make the switch to LEDs.

#2 Efficiencies have improved

Today’s LED lighting products can be 6x to 7x more energy efficient than older lights and cut energy use by more than 80% in certain applications.

For example, Net Zero USA’s commercial lighting installers commonly perform upgrades on T12 fluorescent light fixtures like those used in office settings. Many times these fixtures use 4 40W T12 lamps for a total of 160W.

With LED Retrofit Kits, these same light fixtures can be brought down to 60W, 40W, even 30W totals while providing the same or better levels of illumination.

#3 Lower Costs + Better Efficiency = BIG Savings

Energy efficiency is sometimes referred to as the “low hanging fruit” but don’t let that term confuse you about how powerful these improvements can be.

DOE projections show that LED lighting installations could save Americans nearly $630 billion in avoided energy costs between now and 2035.

In facilities where lights are kept on 24/7, like many fitness clubs and gyms, an LED lighting upgrade can provide thousands of dollars in annual electricity savings. Net Zero USA used 30-watt LED Retrofit Kits to upgrade the outdated fluorescent lighting at Anytime Fitness in Lancaster, SC. As a result, the facility is on track to save more than $42,000 dollars over the next 10 years.

Learn more about common savings scenarios by reading A Simple LED Lighting Upgrade Could Save You Thousands.

Additional Drivers Of LED Lighting Adoption

Their unique characteristics including long life and ease of maintenance, good performance in cold temperatures, lack of infrared or ultraviolet emissions, and instant-on performance are beneficial in many lighting applications. The ability to be dimmed and to provide color control are additional features which make LED lights very appealing.

Ready to save with LED lighting?

Net Zero USA offers two great options for upgrading commercial lighting to LED technology. Order LED Retrofit Kits direct from the manufacturer – Net Zero USA – and install them yourself by calling (888) 326-2220, or contact the Net Zero USA LED lighting installer nearest you to schedule a free facility audit and learn about a turnkey LED lighting upgrade for your organization.