Case Study – LED Lighting Upgrade Furthers Dairy’s Energy Efficiency Practices New LED Lights are making a Big Impact Overview Ballard Family Dairy and Cheese partnered with Idaho Power, Site Based Energy, and D. L. Evans Bank for an energy upgrade. Lighting improvements alone save 38,466 kWh and $2,308 annually, with an ROI of 132% and a payback period of 0.8 years. The new lighting’s GHG reduction of 26.5 mt of CO2 is another step towards the Innovation Center’s goal of 25% less emissions by 2020. In Idaho Power’s Custom Efficiency Report, Steve said, “but we were really surprised by how much we could save just by changing out the lights.” Ballard Family Dairy & Cheese recently updated much of their energy-using equipment, seeking triple bottom line savings. The Dairy worked with Idaho Power, an IDACORP Company, and Site Based Energy, LLC, to develop a plan to make this project possible. Idaho Power’s incentives program was a leader in the project’s success, as well as the financing assistance of D. L. Evans Bank. A couple of years later, all the hard work seems to be paying off: Ballard Family Dairy and Cheese won a US Dairy Sustainability award in 2013 and the dairy continues to grow and save. One energy measure Stacie and Steve Ballard focused on was lighting. The dairy made an almost complete switch to LED lighting. Previously, LEDs, or Light Emitting Diodes, were too small and too expensive to be a viable option for overhead lighting. However, times are changing and LEDs are growing tremendously in the lighting industry. With an ever increasing lumens/Watt ratio, LEDs continue to produce more light from less energy. And now LEDs are moving into dairies as well. Steve Ballard is very happy with his new lights. He says they’re brighter, cleaner, and offer a much better color, which is a major improvement, particularly in the cheese plant. Steve is also highly pleased with the brighter light they provide from his outdoor floodlights. LEDs actually function better in colder weather, while other types of lighting typically get dimmer. This is a big plus for dairies as the barns are exposed to the changing temperatures and the cows prefer the cold as well. LEDs are also instant-on lights, as opposed to fluorescents which generally require some warm-up time. This makes LED lighting ideal for lighting controls with sensors that signal the lights to dim or turn off when they’re not necessary. The Ballards are benefitting from this feature as well. Key Components for Lighting Upgrade Idaho Power offered incentives for lighting changes, including the removal of the mercury vapor lamps and the installment of energy efficient lighting. The Ballards practice long-day lighting, keeping their cows in daylight levels 16 hours a day, every day. This equates to almost 6,000 hours a year, meaning the payback happens faster and every little bit of savings counts. Key Project Benefits Electricity Savings – Lighting continues to improve with more energy efficient products coming out every year. LEDs offer a higher Lumens per Watt ratio, converting more energy into light and less into wasteful (and potentially dangerous) heat. The Ballards are saving 38,466 kWh of electricity every year. Now lighting on the dairy requires only 14,442 kWh of electricity, a mere 27% of their previous use. Financial Investment – Less energy means lower costs. The Ballards are saving $2,308 every year on electricity costs with their new energy efficient lighting. However, advanced lighting is expensive, particularly LEDs. But, with an estimated ROI of 132% and an estimated payback of less than a year, it’s a worthwhile investment to make. Environmental Stewardship – Less energy means lower costs and a smaller carbon footprint, 26.5 mtCO2e/year, to be exact. Based on EPA’s environmental impact calculator, this is equivalent to 5 vehicles off the road, 3 US homes electricity, and 21 acres of US forest’s CO2 sequestration. However small these numbers may seem, these savings are just from switching out a few light fixtures. And every little change makes a difference. Additionally, LEDs don’t contain mercury or other dangerous elements more common in other fixtures. Improved Cow Health – Better lighting in the barns can also have a substantial impact on the cows. Studies have shown that longday lighting can increase milk production. Normally, varying lengths of light exposure causes changes in hormone levels that affect how much milk a cow produces. This seasonal change is unnecessary when the cows have access to quality food all year round. Additionally, advanced lighting allows employees to actually see the cows better. Now injured or sick cows can be treated earlier and faster. Lighting as an Opportunity for Industry-Wide Change The savings that lighting alone offers, in terms of energy and cost, could mean a changing approach for the Innovation Center for US Dairy’s energy efficiency goal. The sustainability team is working towards 25% fewer emissions from the dairy industry by 2020. Currently, energy audits are the primary driver of change. However, high costs and relatively low yields are causing the Innovation Center to seek other means. With recent data regarding LEDs and other high efficiency lighting, the procedure may become a lot simpler. Just change a light bulb. Lighting Inventory Location Covered Storage Tank Room Cooler Storage Hallways 1&2 Boiler, Labeling, Tank Room Boiler Drive Through Hallway 1, Cow Stand Hallway 2 Cow Stand Garage Cheese Plant, Labeling Lab Outdoor Flood Lights Qty 2 1 6 1 3 4 1 3 2 1 2 3 5 1 6 Previous Lighting 90W Incandescent 90W Incandescent 22W Incandescent 4ft, 4 lamp T12 2ft, 2 lamp T12 4ft, 2 lamp T12 4ft, 2 lamp T8 8ft, 2 lamp T12 500W HID 100W CFL 250W Metal Halide 250W Metal Halide 400W Metal Halide 400W Metal Halide 250W Mercury Vapor Qty2 1 1 1 1 2 3 1 3 3 1 2 2 5 1 5 New Lighting 120W LED 60W LED 80W LED 4ft, 3 lamp T8 60W LED 60W LED 60W LED 60W LED 60W LED 60W LED 60W LED 4ft, 6 lamp T8 120W LED 80W LED 40W LED Flood Annual kWh Saved 350 175 304 461 701 863 23 2,926 5,548 234 2,745 3,136 9,956 2,225 8,818 Project Details Overall Project Farm Type Herd Size Financing of Net Cost Total Gross Cost -Utility Rebates -USDA REAP grant Net Cost ROI Payback Dairy 100 Small Business Administration Loan $17,523 $3,075 $4,380 $10,067 23% 4.3 years Lighting Project Lighting Supplier Total kWh Savings GHG Reduction Annual Cost Savings Installed Cost -Total Incentives Net Installed Cost ROI Payback (with incentives) Site Based Energy 38,466 26.5 mt CO2 $2,039 $3,510 $1,967 $1,543 132% 0.8 years