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LIGHTING RETROFIT : THE BIG PICTURE
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START WITH WHY
• How do we think, act, and communicate our ideas? • Video (1:36 to 4:47)
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HIDDEN COSTS OF THE STATUS QUO
• Why Change?
• Make a difference.
• I believe...
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SIMPLE PAYBACK: WHAT’S MORE IMPORTANT?
• A $20,000 investment yields an additional $100,000 over the next 10 Years, assuming NO inflation of electric rates
• $20,000 provides 50% interest for 10 years... LIGHTING RETROFIT: INDUSTRIAL| 10
Solution #1 Solution #2
Project Cost $100,000 $120,000
Annual Savings $50,000 $60,000
Simple Payback 2.0 Years 2.0 Years
10-Year Savings $500,000 $600,000
LIGHTING INCENTIVES: NATIONAL
• Utility, State, and Municipal
– Standard/Prescriptive ($ per Unit)
– Custom ($ per kW/kWh reduced)
• Annual Budget
– 1st Come - 1st Serve
• Technology/Application Specific
– LED Exterior
– Office/Warehouse (Title 24 )
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LIGHTING INCENTIVES: LOCAL
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• Standard measures:
– $0.40 per watt: high bay & exterior
– $3-7 per lamp: T12 to T8 replacement
– $30 for occupancy sensors
• Custom measures:
– Increased custom electric incentives – $0.06/kWh for lighting
INCENTIVES: INCOME TAX RELIEF
• EPACT 2005: Federal Tax Deduction
– Up to $0.60 / Sq. Ft. incentive to tax-paying building owner
to reduce energy consumption
– Criteria based on LPD, bi-level switching, IES light levels,
controls
– expires December 31, 2013
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ANATOMY OF A LIGHTING RETROFIT
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PLAYERS: RETROFIT SOLUTIONS
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PAYMENT OPTIONS
Method Pro’s Con’s Comments
Cash no interestrequires immediate
capital fundsusually a budget item
3rd Party Lease no money downAcct. Dept. may label as capital
lease
provides positive cash flow; lease term longer
than payback period
Performance Contract no money down10-20 year
commitment; too expensive
financial vehicle of choice by ESCO’s
Shared Savings no money downextensive M&V required, too
expensive
takes advantage of uneducated client
Blend into Electric Bill no money downmust renew electric
contract
no capital request or approvals needed; can include other ECM’s
RETROFIT TRENDS: TECHNOLOGY
• Wireless Controls – EnOcean vs Zigbee vs Wi Fi, annual fees, still
maturing
• Linear Fluorescent – Lamps: Energy-Saving, long-life, amalgam
– Ballasts: HE, 480 volt, ILO
– rare-earth phosphor shortage
• LED – Improved: manufacturer claims, LPW, luminaires
• Induction – Niche audience, LLD problem
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RETROFIT TRENDS: TECHNOLOGY
• Pulse-Start Metal Halide & Electronic Ballast kits
– improved LLD, longer life
• Ceramic Metal Halide kits – great CRI, improved LLD, small footprint
• Plasma – still chasing LED
• Compact Fluorescent – sell your stock now...
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RETROFIT TRENDS: APPLICATIONS
• Parking Garages – EPACT, daylight & occupancy control
opportunities
• Exterior – poles, building-mount, canopy
• Hospitals – 24/7 hours, 1st generation T8, well-being of
patient
• Refrigerated Warehouse – perfect for LED!
• Auto Dealerships – see exterior above
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LAMPS: AVERAGE RATED LIFE
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T8 Long-Life LLD= 0.96 @ 24,800 hours
T5/HO Long-Life LLD= 0.93 @ 24,000 hours
LAMPS: RATED LIFE & LAMP LUMEN DEPRECIATION
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Induction LLD= 0.74 @ 40,000 hours
Ceramic MH LLD= 0.89 @ 12,000 hours
Probe-Start MH LLD= 0.65 @ 8,000 hours (400w) @ 4,000 hours (<= 250w)
T8 LUMEN OUTPUT: TEMPERATURE
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SIMPLE PAYBACK ANALYSIS: REFRIGERATED WAREHOUSE
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6-lamp T5/HO
LED320 PSMH Magnetic
315 CMH Electronic
Installed Cost $40,537 $126,982 $37,304 $52,768
EPACT Tax Deduction
(Effective Credit)
$10,500 $10,500 $10,500 $10,500
Annual Energy Savings
$9,601 $40,242 $7,569 $8,199
Annual HVAC Savings
$3,840 $11,185 $3,027 $3,280
Maintenance Savings
$1,095 $1,095 $1,095 $1,095
Simple Payback, in Years
2.06 2.21 2.29 3.36
Design Strategy
1-for-1; no dimming
1-for-1; dim to 10% FC,
70% of time
1-for-1; no dimming
1-for-1; no dimming
Existing ConditionsExisting Conditions
Luminaire400w MH High Bay
System Watts
458
Ambient Temp.
-10 oF
Voltage 277
AssumptionsAssumptions
Project Size 100 Fixtures
$ per KwH $0.08
Existing Hours
8,760
Labor Lift
Location Omaha, NE
10-YEAR COST OF OWNERSHIP: REFRIGERATED WAREHOUSE
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6-lamp T5/HO
LED320 PSMH Magnetic
315 CMH Electronic
10-Year Ownership: Initial Cost + Energy + HVAC + Group Relamp
$104,031 $132,771 $136,643 $138,724
Average Rated Life: Lamp (in Hours)
40,000 100,000+ 20,000 30,000
Group Relamp Cycle: (in Years)
3.6 11 + 1.8 2.7
Average Rated Life: Ballast
100,000 switching cycles
60,000 hours?
60,000 hours
60,000 hours
Warranty: Lamp/Ballast
(in Years)3/5 7/7 1/3 2/5
REFERENCES
• Simon Sinek- Start With Why www.startwithwhy.com
• Illuminating Engineering Society www.ies.org
• National Council on Qualifications for the Lighting Professions www.ncqlp.org
• Ameren Illinois: ActOnEnergy® www.actonenergy.com
• DSIRE website www.dsireusa.org
• EPACT website www.lightingtaxdeduction.org
• Osram Sylvania www.sylvania.com
• Philips Lighting www.usa.lighting.philips.com
• GE Lighting www.gelighting.com/na/
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ABOUT THE PRESENTER
Maneri~Agraz, LLC
Houston, TX 832-358-3900
[email protected] www.maneriagraz.com
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Frank Agraz is a principal owner at Maneri~Agraz, LLC, a national turn-key lighting retrofit solutions provider. He has 19 years experience in the energy-efficient lighting industry and has worked in several segments of the business including manufacturing, ESCO, maintenance, and turn-key retrofit installations.
He is the District 4 Vice Chair of the Illuminating Engineering Society and is Lighting Certified by the NCQLP.
Mr. Agraz graduated from Texas A&M University and received his Bachelors of Science in Industrial Distribution.