Organisations Are Waking Up To LED Lighting Benefits
Lighting accounts for 20% of all the energy consumption in the UK and a significant chunk of energy bills. Indeed, according to the Carbon Trust, it can make up 40% of a building’s electricity bill, so any way to make that lighting more efficient can dramatically cut costs. For organisations, including businesses of all sizes, schools and other institutions, that want a cheaper, instant and more environmentally-friendly way of lighting their premises, the latest generation Light Emitting Diode or LED lighting could be the answer.
Their appeal has been world-wide. In the global market, sales last year were expected to reach around $30.5bn (£23bn) or roughly 36% of the total value of global lighting sales – despite only being available for the last 20 years.
How LEDs work
Unlike ordinary incandescent bulbs, which emit light as a current is passed through the metal within them, LEDs pass electrons through a semiconductor and consequently have no filament to wear out, which also means they don’t get as hot.
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They can produce light in a variety of colours and like the white fluorescent tubes that light many offices, can do so without a great deal of glare. Unlike fluorescent tubes though, they can be readily turned on and off without diminishing their lifespan.
They reach full brightness almost instantly, cutting down on energy use and providing an instant light source unlike fluorescent lighting that can take more than a minute to achieve maximum output.
Advantages of LED lights
LED lighting is more energy efficient, cost-effective and durable than existing standard filament, halogen and fluorescent strip lights. It can produce significant energy, cost and CO2 savings while improving the overall working environment, comfort and productivity.
LED lighting also has an extended lifespan, lasting up to 50,000 hours – approximately 17 years if used for eight hours per day.
At the same time, LED lighting, which is 95% recyclable, reduces an organisation’s carbon output by more than 80% and is environmentally friendly as it contains no mercury or polluting gases.
What are the costs?
LED lighting is several times more expensive in terms of up-front costs than conventional lighting. However, on a whole life cost basis, a very different story emerges – as this real life example of a Midlands-based educational institute demonstrates.
The organisation in question used a total of 546 traditional halogen bulbs of various sorts to light its premises at a cost of £9,000.
To use all of these bulbs for a total of 3,000 hours a year required 155,000 kilowatt hours of electricity. Based on current electricity costs, this equated to a lighting cost of around £17,000 per annum.
To replace all the conventional bulbs with LED lighting had a projected replacement cost of £48,000.
However, over 3,000 hours of illumination, the lower energy usage of the LEDs meant they only required 38,000 kilowatt hours which, based on current electricity costs, was just £4,000 per annum, an annual saving of more than £13,000.
That meant the payback period for the original investment of £48,000 was just 3.7 years, and over the projected 15 year life-cycle of the LED lighting the total savings were around £150,000.
The existing halogen lighting produced carbon dioxide emissions of more than 84,000kg per annum, compared to just 20,000kg of CO2 produced by the LED lighting – a saving of more than 64,000kg of CO2 per annum.
Asset Finance to support your LED project
Funding for new LED lighting doesn’t have to be a daunting prospect and your asset finance broker should be able to steer you along the right path.
At Anglo Scottish, our team of finance specialists have years of experience in providing finance to a variety of organisations from different business sectors.
When it comes to LED lighting, we work with a growing panel of 10 different funders, and many more suppliers, to ensure that we find our customers the most attractive and cost competitive finance packages that are available.
As experts in asset finance, we pride ourselves in taking the time to understand the specific needs of any organisation be it businesses of any size, schools or other institutions, and this continues to apply in this exciting new product area.
Want to find out more about your finance options for funding new LED lighting? Then get in touch with Anglo Scottish Asset Finance today