LED versus Fluorescent
What is the cost of sticking with fluorescent lighting?
Do you have a shed or building with fluorescent light fittings? Have you considered the savings that LEDs can bring
compared with the cost of doing nothing and sticking to fluorescent lights?
To highlight the benefits here is a worked example from a livestock shed. The calculations assume the lights are in
use for 15 hours per day and also take into account a conservative annual energy inflation rate of 3.5%. In reality the
savings may be higher because we can expect electricity rates to increase far more than this over the coming years.
System type
Existing fluorescent lighting
Proposed LED linear lighting
40 x 58W fluorescent strip lights
40 x 20W LED lights
Annual running costs (electricity)
£1,572.82
£549.29
CCL costs
£84.27
£29.43
Re-lamping costs
£167.96
£0
Total annual costs
£1,825.05
£578.72
The above table shows the annual running costs for the first year.
The chart opposite shows how
the running costs increase as
electricity rates, CCL and relamping costs increase. We have
calculated the costs over a 9
year period because this is how
long we would expect the new
LED fittings to last.
The annual running costs are
significantly lower with an LED
system. The re-lamping costs are
reduced because the lifespan
of LEDs is far greater and the
CCL costs are reduced becuase
the LEDs are more efficient.
However, The main proportion of
the savings is from the reduced
electricity consumption of the
low-energy lights.
These running costs do not account for the initial capital expenditure so no lets
take a look at the cost of making the switch to LED...
For this particular scheme, the captial cost of the proposed lighting would be
£4,960 including installation costs.
Enhanced Capital Allowances
LED lighting is eligible to receive 100% tax relief in the same year that the
purchase was made, allowing the business to write off the whole cost of the
equipment against taxable profits. In this instance the Enhanced Capital
Allowances amount to savings of £1,289.60.
GMI Energy I www.gmienergy.co.uk I energy@gmienergy.co.uk I tel: 0113 819 9777 I fax: 0113 276 0180
LED versus Fluorescent
What is the cost of remaining with fluorescent lighting?
The chart opposite shows the
annual savings and balance
(cumulative revenue) from the
new lighting system.
After two years the system has
paid for itself and will generate
significant savings.
Over 9 years we would expect
the system to achieve savings of
£14,207.85 after install costs. The
initial outlay for an LED system is
more than traditional fluorescent
strip lights, however, the
potential savings make it a very
worthwhile investment and that’s
just the running costs. Below we
have highlighted some of the
other benefits of LEDs.
Benefits of LED lighting
LEDs are far more durable than incandescent and fluorescent lights; we can expect LEDs to last for typically 50,000
hours, with many lasting up to 80,000 hours, while incandescent or fluorescent lights typically offer a 10,000 hour
lifespan. LEDs are suitable for a wide range of environments; they offer safer lighting levels in factories and warehouses
and a more ‘natural’ light in livestock sheds and horticulture where they are even believed to enhance production.
LED stands for Light Emitting Diode, which is a solid-state semiconductor light source.
LED lighting is a popular choice of low energy lighting because it offers exceptional
energy saving properties. The main advantage is the high luminous efficiency
which was 18-22 lumens per watt in 2002, compared to conventional 60-100W
incandescent light bulbs which only emit around 15 lumens per watt.
The development of LED technology has caused their efficiency and light output to
rise exponentially with a doubling occurring approximately every 36 months since
the 1960s. in 2011 LEDs reached a new level of efficiency emitting 450 to 650 lumens
from a 6W LED. This output is equivalent to a 40W incandescent bulb and a typical
13W LED in 2009.
üü Easy to install
üü Provides sufficient light without flicker or glare
üü Save up to 80% on your electricity bills
üü Choose from a range of flexible lighting options
üü More durable than incandescent bulbs
üü Cool to the touch - reduce your fire risks
üü No UV or infrared light emitted
üü No hazardous mercury components
GMI Energy I www.gmienergy.co.uk I energy@gmienergy.co.uk I tel: 0113 819 9777 I fax: 0113 276 0180