San Diego's future; are we prepared to live in a more energy efficient San Diego?
At LR Electric, Inc we are committed to saving electricity and helping the environment. We love the idea of doing something that is both good for the planet and the pocket book. Here is a great article from LED's Magazine that covers the topic perfectly.
Consider both long-term energy and maintenance savings and the impact of LED lighting projects on building market value to get a true look at the cost of major retrofits.
Don McDougall, general manager, Solid State Capital Services (SSCS)
The prime barrier to broader deployment of LED-based lighting remains high upfront costs despite the energy and maintenance savings that a retrofit can deliver over many years. There are a growing number of financing options for lighting projects, but still building owners struggle to justify major renovations. Lighting manufacturers, designers/specifiers, and building owners, however, must understand that solid-state lighting (SSL) retrofits are not akin to legacy lighting projects. High-quality LED lighting can deliver real capital improvement, measurable in building market value that can justify many projects.
Solid State Capital services (SSCS) completed a project for one of the largest property owners in Los Angeles County. The lighting retrofit that they completed cost them $60,000. The energy savings and other benefits gave this project a 30-month payback or return on investment (ROI). This client arranged to pay for the lighting and installation over time and so the project was effectively cash-flow positive the first year. The savings exceeded the amortized costs.
The above story is becoming relatively commonplace in the lighting industry as LED-based products improve in quality and drop in price. The most important benefit to this client was the increase in market value to the property. The savings in energy usage were so pronounced that the property’s market value was increased by $426,000.
The capital improvement view
All too often an LED lighting retrofit is seen as an expenditure or a maintenance issue. In fact, such a project is a capital improvement that increases the market value of the property. Like with any capital project, building owners should use quality products to ensure that they realize the highest return on investment (ROI). Ironically, spending more money upfront can be a good thing. Cheap products equal poor ROI.
For more check out the full article at https://www.ledsmagazine.com/articles/iif/print/volume-3/issue-1/features/renovation/commercial-led-retrofit-justifies-project-with-market-value-increase.html