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Types of Customers


Industrial

Warehouses and Manufacturing facilities often have long hours with as many as 2-3 shifts operating daily. They offer one of the best return on investments for lighting retrofits. Until a few years ago, if you needed to light a warehouse you only had a few choices: Metal Halide (MH), High Pressure Sodium (HPS) or T-12 fluorescent. These have been the main types of lighting used in these facilities for decades. With such long hours, bulbs and ballasts have to be constantly changed since the average life of a bulb is from 10,000 hours for fluorescents and 15,000-24,000 hours for MH’s or HPS. This results in huge maintenance costs as the owner is constantly buying bulbs and ballasts and having to pay someone to change them out. In a plant that has continuous operation that can disrupt production or even leave certain areas in the dark until someone can change the bulb or ballast.

In this economy, facility managers are constantly watching operating costs and in most cases report directly to the CFO (Chief Financial Officer) or COO (Chief Operating Officer.) With products being imported at rates lower than ever, US manufacturers and warehouses have to watch their operating costs closely. Lighting is considered necessary and sometimes overlooked or just accepted as a non-negotiable expense. What we actually pay for is “Energy” not ”light”. For example, if you have two light sources and both use the same amount of electricity but one puts out significantly more light than the other, your two bills would be identical. Meaning, even though one is giving you a lot less light than the other, you are still using the same amount of electricity, in turn you would be paying the same amount.

This is the case in most facilities whose lighting system is 10-15 years old. Lighting wanes over time, meaning in the first year your fixtures will put out more light than in their 10th year. However, as the lights depreciate over time, you keep spending the same amount in electricity or even more each year as the fixtures become more and more inefficient. “It can be equated to a car that used to get 20 miles to the gallon but now only gets 10 miles to the gallon. It doesn’t make sense to keep filling it up at some point you have to make the necessary repairs to get the mileage back up.” Too often we see facilities who are paying for lighting that they just are not getting. This ends up in Commercial Buildings using as much as double the electricity than they actually need as light fixtures are way more efficient now than they were 10-15 years ago.

There are also State incentives and Federal Tax Credits available to help offset the retrofit. NJ has one of the best Incentive programs in place and has been offering $100-$200 for every fixture (400w-1000w) changed out or retrofitted, meaning if you change 50 High Bay fixtures you will qualify for $5,000-$10,000 in State Incentives. Which will greatly help to pay for the retrofit. There are also Federal tax credits available through the Energy Efficient Commercial Buildings Tax Deduction (CBTD) and Bonus Depreciation. The CBTD or EPAct (Energy Policy Act) allows a business who has installed or retrofitted his interior space with energy efficient lighting and while still meeting acceptable light levels to earn an Accelerated Tax credit of up .60 cents a square ft. For a 200,000 sq. ft. facility the Credit would be $120,000. For an exterior retrofit (e.g. Pole lighting) the owner/lease holder can use the bonus depreciation Deduction which allows the owner or leaseholder to deduct 100% of the equipment purchased in the year it was put in service rather than the typical 39 year straight depreciation. The Government has recognized the obvious benefits of retrofitting and will not be offering these state and federal benefits much longer. This Act was extended to until 12/31/2011, after 2011 the amount that can be deducted is %50. So the time to act is now, and the cost of waiting is huge. Combining these measures Warehouse/Manufacturing facilities can see an ROI of as little as 12-18 months.

Parking Lots

The highest operating cost for parking lots and garages is going to be lighting, making them a huge beneficiary when it comes to a lighting retrofit. Their maintenance costs are colossal as they are constantly replacing bulbs and ballasts. Most property owners understand that a well lit lot makes their customers feel safer and their cars less likely to get broken into. Also the more lights that are out in a lot, gives the customer the appearance of poor management.

Most lots have their lighting on 24 hours a day 7 days a week or 8,760 hours a year. The main types of lighting used in parking lots have always been Metal Halide (MH), High Pressure Sodium (HPS) or T-12 fluorescent. With such long hours, bulbs and ballasts have to be constantly changed as the average life of a bulb is from 10,000 for fluorescents to 15,000-24,000 for MH or HPS. This results in huge maintenance costs as the owner is constantly buying bulbs and ballasts and having to pay someone to change them out. Now a days as owners and Facility managers look to manage growing operating costs, a new choice of lighting is being installed.

Induction lighting was invented by Nicolas Tesla in 1891 and has been slowly making its appearance into the mainstream markets. It is now recognized as one of the most efficient light sources available with almost double the life span as LED lighting. Most municipalities have already realized the benefits and have retrofitted their pole lights to Induction. Induction light fixtures produce the same amount of usable lumens(light) as Metal Halides or HPS and only use about 50% of the electricity, that means that as soon as the fixtures are retrofitted, you will see an immediate drop of about 50% in the electric bill the next month. They also have a lamp life of 100,000 hrs. or approx. 20 Years. If they are on 12 hrs. a day, 365 days a year.

There are also benefits for switching over in the form of State Incentives and Federal Tax credits available. Many states have been offering an incentive for every fixture retrofitted or replaced with an energy efficient fixture. There are also Federal tax credits available through the Energy Efficient Commercial Buildings Tax Deduction (CBTD) and Bonus Depreciation.

The CBTD or EPAct (Energy Policy Act) allows a business who has installed or retrofitted his interior space (Including Parking Garages) with energy efficient lighting and while still meeting acceptable light levels to earn an accelerated Tax credit of up to 60 cents a square ft. For example, a 100,000 sq. ft. parking garage, the Credit would be $60,000. For an exterior retrofit (e.g. Pole lighting) the parking lot owner can use the bonus depreciation Deduction which allows the owner or leaseholder to deduct 100% of the equipment purchased in the year it was put in service rather than the typical 39 year straight depreciation. The Government has recognized the obvious benefits of retrofitting and will not be offering these state and federal benefits much longer. This Act was extended to until 12/31/2011, after 2011 the amount that can be deducted is 50% and in 2013 the Deduction is scheduled to be phased out. So the most opportune time is now within the next 6 months! The cost of waiting is huge.

Car Dealerships

Car Dealerships might often be overlooked when you think of retrofit opportunities, but they actually have one of the highest lighting costs per sq. ft. Car Dealerships often play “lighting wars” as they are generally grouped together along a strip and want to stand out from their neighbors. This usually results in Dealers over-lighting their lots to attract the customers to their lot rather than the guy next door. Until recently there weren’t too many options for exterior lighting for car dealers, they pretty much had two types of light sources available: Metal Halide (white light: at gas stations, football games, etc.) or High Pressure Sodium (yellowish orange light: most high way lighting). Among the two, the main choice for Dealers has been Metal Halide because of the clean, crisp-white color it gives off and the typical wattage is always either 400 or 1000 watts.Nowadays, the new standard has become Induction Lighting. Most municipalities have already realized the benefits and have retrofitted their pole and street lights.

What is Induction Lighting?
Induction light fixtures produce the same amount of usable lumens (light) as Metal Halides or HPS and only use about 50% of the electricity, that means that as soon as the poles are retrofitted the dealer will see an immediate drop of about 50% in their electric bill the next month. They also have a lamp life of 100,000 hrs. or approx. 20 years (If they are on 12 hours A day 365 days a year). Compared to MH or HPS lamps, which have an average life of 15,000-24,000 hours, Induction light fixtures will have significantly less bulb and ballast changes resulting in substantial maintenance savings. See Induction Lighting comparison chart for more info.

Car Dealership Economics
Forty-eight percent of the nation’s energy—including 70 percent of its electricity—is consumed by buildings, says the U.S. Green Building Council. Dealerships — with their 24/7 security systems and extensive lighting — tend to devour energy. Approximately $1.9 Billion will be spent on Energy. EPA estimates that if all dealerships reduced their energy consumption by just 10 percent, they would save about $193 million in energy costs and cut more than one million tons of greenhouse gases each year.
(Source:National Automobile Dealers Association)

In 2008, dealers spent approximately $7.3 billion advertising manufacturers’ products, or more than $20 million per day. These expenditures are in addition to what the manufacturer spends to advertise its product, thus augmenting the automakers’ marketing efforts. Dealers also spend $329 million annually to train sales personnel to remain knowledgeable about manufacturers’ products. In addition, it is estimated that dealers spend $873 million annually on regulatory issues such as Truth in Lending and Graham Leach Bliley Act/privacy compliance. The cost of waiting for outweighs the amount that will be lost if we don’t act now, Usually with the savings alone you can expect a 12-18 month ROI, plus an overall improvement in your lighting quality.

Commercial Retail/Offices

Retail and Office facilities often have long hours as well, with as much as 16 to 20 hours a day. They as well offer one of the best return on investments for lighting retrofits. Until a few years ago, if you needed to light an office or a retail store you only had a few choices: T-12 fluorescent or 90w halogen floods. These have been the main types of lighting used in these facilities for decades. With such long hours, bulbs and ballasts have to be constantly changed since the average life of a bulb is from 10,000 hours for fluorescents and 2,000 hours for typical floods. This results in huge maintenance costs as the owner is constantly buying bulbs and ballasts and having to pay someone to change them out.

In this economy, facility managers are constantly watching operating costs and in most cases report directly to the CFO (Chief Financial Officer) or COO (Chief Operating Officer.) With products being imported at rates lower than ever, businesses all over the US have to watch their operating costs closely.

Lighting is considered necessary and sometimes overlooked or just accepted as a non-negotiable expense. What we actually pay for is “Energy” not ”light”. For example, if you have two light sources and both use the same amount of electricity but one puts out significantly more light than the other, your two bills would be identical. Meaning, even though one is giving you a lot less light than the other, you are still using the same amount of electricity, in turn you would be paying the same amount.

This is the case in most facilities whose lighting system is 10-15 years old. Lighting wanes over time, meaning in the first year your fixtures will put out more light than in their 10th year. However, as the lights depreciate over time, you keep spending the same amount in electricity or even more each year as the fixtures become more and more inefficient.

Government Buildings

State bodies all over the world are now committed to reducing their energy consumption, cut costs and improve comfort in all government-owned buildings. Many government facilities operate long hours so they too can see a good return on investment. For decades now these types of building have been using fluoroscent or incadedence light. With such long hours, bulbs and ballasts have to be constantly changed since the average life of a bulb is from 10,000 hours for fluorescents and 1,000-2000 hours for incadescents. This results in huge maintenance costs as the facility’s manager is constantly buying bulbs and ballasts and changing them out.

In this economy, facility managers are constantly watching operating costs and in most cases report directly to the CFO (Chief Financial Officer) or COO (Chief Operating Officer.) With products being imported at rates lower than ever, US manufacturers and warehouses have to watch their operating costs closely.

Lighting is considered necessary and sometimes overlooked or just accepted as a non-negotiable expense. What we actually pay for is “Energy” not ”light”. For example, if you have two light sources and both use the same amount of electricity but one puts out significantly more light than the other, your two bills would be identical.

Meaning, even though one is giving you a lot less light than the other, you are still using the same amount of electricity, in turn you would be paying the same amount. This is the case in most facilities whose lighting system is 10-15 years old. Lighting wanes over time, meaning in the first year your fixtures will put out more light than in their 10th year. However, as the lights depreciate over time, you keep spending the same amount in electricity or even more each year as the fixtures become more and more inefficient.

Hospitality

Hotels and restaurants also have long hours, some operate 24 hours a day. This makes them one of the best return on investments for lighting retrofits. Until a few years ago, if you needed to light an hotel or resautant you only had a few choices: T-12 fluorescent or 90w halogen floods. These have been the main types of lighting used in these facilities for decades. With such long hours, bulbs and ballasts have to be constantly changed since the average life of a bulb is from 10,000 hours for fluorescents and 2,000 hours for typical floods. This results in huge maintenance costs as the owner is constantly buying bulbs and ballasts and having to pay someone to change them out.

In this economy, facility managers are constantly watching operating costs and in most cases report directly to the CFO (Chief Financial Officer) or COO (Chief Operating Officer.) With products being imported at rates lower than ever, businesses all over the US have to watch their operating costs closely.

Lighting is considered necessary and sometimes overlooked or just accepted as a non-negotiable expense. What we actually pay for is “Energy” not ”light”. For example, if you have two light sources and both use the same amount of electricity but one puts out significantly more light than the other, your two bills would be identical.

Meaning, even though one is giving you a lot less light than the other, you are still using the same amount of electricity, in turn you would be paying the same amount. This is the case in most facilities whose lighting system is 10-15 years old. Lighting wanes over time, meaning in the first year your fixtures will put out more light than in their 10th year. However, as the lights depreciate over time, you keep spending the same amount in electricity or even more each year as the fixtures become more and more inefficient.