Halogen versus LED (Part 5: Findings of the Comparison)

Referring to the Halogen vs. LED Comparison detailed in the previous post, the document providing the comparison of operational costs of both systems, the cost of lamps for the halogen system will total $21,469.13, the cost of electricity amounts to $55,582.20, and labor required to change out the lamps is $32,255, for a total operational cost of $109,306.33. Most of the lamps would have to be replaced almost 21 times during the 20 year period, but a few lamps must be replaced twice as often. The main costs associated with the LED system conversion include the cost of purchasing the fixtures, and the labor to install them in the amount of $48,882.41. With electric costs of $7,756.10, the total of operation is $56,638.51. The total savings accumulated, by converting the halogen system to LED, is $52,667.82. It is worth noting that the power costs associated with the LED system is so much less than the halogen system because the load is significantly less. The halogen system requires power to run 12,690 watts, while the LED system runs on 1,770.8 watts.

In looking at the projected costs for the 5 options, Option 1 (No conversion) totals $146,304.30; Option 2 (1 year plan) totals $55,861.74; Option 3 (5 year plan) totals $98,070.46; Option 4 (10 year plan) totals $110,764.26; and Option 5 (15 year plan) totals $123,458.06. Additional categories offer a yearly breakdown of expenses by each year, according to each option. In each case, there are significant savings by implementing the conversion to a LED system, as shown in the figure to the left.

The most striking feature of the data is the comparison of continuing to keep the halogen system in operation versus changing it out to LED immediately. A savings of $90,442.59 will be realized over the next 19 years by investing about a third of their expected expenditures over the next 20 years.

In evaluating the chart above, it can further be concluded that the longer Westview Manors waits to convert the exisitng system to LED technology, the less they save. The undeniable fact however is that they will save money, no matter when they convert.