Halogen versus LED (Part 4: Operational Comparison)

The method for comparing operational costs for our example commercial halogen system (mentioned in Part 1) takes several factors into account. In evaluating the approach for converting our halogen system to LED, the number of fixtures, the total loads (in watts), the number of times lamps need to be replaced, and the labor required to provide the needed service. The time of operation for lighting systems, on the project, is assumed to be 6 hours each day, and the cost of lamps is calculated at normal home improvement store market rates. Electric rates are derived from the local electric utility, and documented to be $.10 per kilowatt/hour. Additionally, the project has some equipment that cannot be converted to LED, and the maintenance agreement required to keep those systems operational are calculated to be $130.32 per month. This calculation is identified as the Base Monthly Premium in the cost projections that follow.

Using the inputs listed previously, the comparison calculations were standardized using a 20 year ownership period. This period of time was needed to take the LED system to the end of its operational life of 40,000 hours. The cost projections are presented within 5 options.

1.      The first option is described as repairing the current system with the same halogen technology and beginning a maintenance agreement that would keep the system operational for a set premium to be paid monthly.

2.      Option 2 is described as converting the entire system to LED, at one time, with no maintenance costs above the Base Monthly Premium.

3.      Option 3 is described as converting the system to LED in a 5 year period, with maintenance pro-rated over the conversion period.

4.      Option 4 is described as converting the existing system to LED in 10 years, with maintenance pro-rated over the conversion period.

5.      Option 5 is described as converting the existing system to LED in 15 years, with maintenance pro-rated over the conversion period.

Cost projections were then extrapolated over the 20 year period for comparison of yearly expenditures, yearly maintenance costs, yearly LED equipment costs, and yearly power costs. These calculations will be presented in another post.

The project was audited for the number of fixtures, the load of the cumulative total of lamps in watts, and the number of times the halogen lamps would have to be replaced during the 20 year period of ownership. These factors are summarized in a document titled Comparison of Lighting System Costs of Halogen V.S. LED (20 Year Effective Life), that follows. In that document, the total cost of operation for the current halogen system is compared to the cost of operation of the LED system proposed for Westview Manor. Cost of operation is calculated as the cost of replacing the halogen lamps, and the cost of electricity needed to power the halogen system. Labor is included in the halogen calculations only since LEDs requires no lamp changes. The total costs of operation, for both systems, are then presented in a bottom line format for easy comparison.