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TRUE COST OF LIGHTING
In evaluating the true cost of light, (3) factors must be addressed and analyzed:
Initial Costs: These costs include the initial equipment costs plus any labor to do the installation. The general calculation is as follows:
Initial Cost = (equipment cost) + [ (installation hours) x (labor rate) ]
Energy Costs: This is the energy cost to operate the lighting system. This is the single most significant cost. The calcualtion is as follows:
Annual Energy Cost = # of luminaires x (kW/luminaire) x ($/kWH) x (hours/year)
Maintenance Costs: These costs are incurred as the lighting system ages. This would include lamp replacement, ballast replacement, fixture cleaning, louver and lens replacement.
Maintenance Cost = (cost of materials for maintenance) + [ (hours required for maintenance) x (labor rate) ]
The total system cost would simply be the sum of the (3) costs listed above. This total cost would then address all aspects of the system from initial purchase to maintenance and energy costs over the life of the system.
Typical Energy Usage in Commercial Buildings

Lighting typically accounts for 30-40% of a facility's electricity bill. Some facilities, such as hospitals that operate 24/7, the lighting can account for up to 50% of electricity used.
Life Cycle Cost for a Typical Fluorescent Lighting System

When evaluating a new lighting system or reviewing an existing installation, keep in mind that the energy costs wil be the single largest expenditure and that it is a reoccuring monthly cost.
Choosing energy efficient lamps, ballasts and fixtures can help keep that energy expense lower while providing quality light levels.
Energy Solutions
Lighting is the one load that can be significanlty altered to produce energy savings while maintaining or even improving current light levels. Energy Solutions:
- Replace T12 systems with energy efficient T8 or T5 systems
- Use high frequency electronic ballasts instead of magnetic ballasts
- Replace incandescent lamps with compact fluorescent lamps
- Implement a lighting maintenance plan in your facility (group re-lamping and disposal)
- Install lighting controls (dimming instead of fixed light, occupancy sensors)
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