LED vs. Halogen Lamps - Cost of Ownership Comparison

Discussion in 'Landscape Lighting' started by Illumicare, Apr 18, 2011.

  1. Illumicare

    Illumicare Inactive
    Messages: 148

    We have had a lot of inquiries from contractors regarding cost of ownership, cost benefit analysis and how to sell premium LED lamps to their clients.

    In response to your inquiries, we have prepared a Total Cost of Ownership comparison sheet. The sheet highlights the initial and operating cost differences between LED and halogen lamps, as well as information about how to price retrofit projects and new LED system installs.

    You can log in and download the sheet right here:


    Once you are logged in, you can access the sheet by selecting Downloads from the main menu.

    P.S. Because the TCO sheet contains sensitive project pricing information, we felt it would serve contractors better to remove the PDF document from the public forum and offer access to it through a secure area of our website.
  2. David Gretzmier

    David Gretzmier LawnSite Gold Member
    Messages: 3,646

    James- very nice info. you might consider getting a freelance iphone or droid programmer to develop a simple app for your wholesale clients that allows them to plug in how many fixtures with traditional bulbs and then your program does the math to produce the charts that shows a potential client how much money they save verses LED.

    you could allow folks in different areas to put in thier current electric rates ( here it is .08 per kilawatt).
  3. Illumicare

    Illumicare Inactive
    Messages: 148

    Thanks for the suggestions David. I too think it would be great to have a mobile app. that would calculate cost benefit of LED vs. Halogen. In the short term I am hoping that we will be able to get a live, printable pdf version on our website. Maybe in the future we can look at developing such an app.

    One note, when pluging in your local electricity rates, be sure you use the actual cost and not the stated per kWh cost that your power authority states. Actual electrical costs include: cost per kWh for electricity, delivery costs, maintenance costs, debt retirement fees, surcharges and any taxes. Basically you take your total monthly bill for electricity and divide by the total number of Kwh consumed in that month. Here I am paying $0.144 per kWh.
  4. David Gretzmier

    David Gretzmier LawnSite Gold Member
    Messages: 3,646

    never thought of it that way james, you are right, my rate is only the gross .08 per killowatt. my net is probably higher.

    If you are truly interested in developing that app, there are tons of freelance programmers that do just that for a very reasonable price. The marketing company I use just had an iphone/ipad app developed for a buddy of mine in the heating and cooling business, it cost about 2 grand . you plug in your current energy usage for you old a/c units, It shows the cost/benefit of different new systems on seer and furnace efficiency ratings and payoff dates for each. it had other areas on different solar options, cost/benefits of insulation, etc.

    it was pretty slick and I was impressed. it was what made me think it would work well for folks trying to get clients to upgrade to LED and sell your product.
  5. steveparrott

    steveparrott LawnSite Bronze Member
    Messages: 1,276

    Just to be a Devil's Advocate:

    Is it fair to make an ROI calculation based on estimated life when that number far exceeds the product warranty?

    After all, company X only guarantees the product will last a few years, not that it will last the full L70.

    I have a washing machine that's still working after 20 years (probably had a 2 or 3 year warranty). But I don't think Sears would have published an ROI calculation based on replacement after 20-years.

    My only point here is that we need to be careful about including replacement costs (or lack of them) in ROI calculations - especially when we really don't know how long the LED will continue to function (let's be honest - the outdoor environment is really, really harsh - we're talking aluminum components and sockets!).

    Great, talk about energy savings on a yearly basis, and calculate the break-even point when energy savings meet intial difference in LED and incandescent purchase costs. That's a strong selling point.
  6. Tomwilllight

    Tomwilllight LawnSite Senior Member
    Messages: 284

    Steve, Thank you for injecting a dose of reality into this thread. Landscape Lighting is still a backwater in the lighting industry and very few manufactures really understand the difficulty of designing and manufacturing electrical and electronic devices that will withstand the rigors found in Landscape Lighting.


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