Smart Calculations

By Judah Regenstreif

As federal laws become increasingly strict and technology continues to advance, the necessity for a retailer to focus on long-term sustainability is crucial for continued growth. Companies are faced with the pressure to reduce energy and manage operating costs and maintenance expenses.

Lighting represents approximately 30% to 50% of operating costs within a typical commercial installation. Businesses across the globe desire the most energy-efficient systems to obtain the maximum return on their investment. However, during this process, challenges occur due to communication obstacles and varying department priorities.

Calculating the overall cost of lighting ownership can be a rigorous process if a company does not have the correct understanding of the necessary factors of how the costs are calculated. This creates an opportunity for distributors and manufactures to falsify or exaggerate data to display a higher return for the company that might not be attainable.

When a company approves the return amount on a lighting retrofit, it can build a faster momentum for the projects to be completed at an accelerated rate.

Expediting projects without accurate information usually leads to changing orders, budget revisions, and an overall increase in time spent by the employees to reduce costs and maintain the original savings expected.

When calculating an energy analysis, the following factors should be included to provide the most accurate and detailed breakdown of current energy usage and areas to reduce costs:

• The cost of electricity to run the lighting system;

• Annual operating hours of luminaire products;

• The average life of lamps and ballasts;

• Tax credits/reductions and energy-efficiency incentives;

• The cost of the replacement and installation of lamps and ballasts; and

• The cost of the HVAC system to cool the heat produced by the lighting system.

Judah Regenstreif is VP national accounts for Regency Lighting, a major distributor for lighting products nationwide, servicing new construction, retrofits, design consultation and maintenance projects.