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How are cost savings calculated?

LED lighting can save up to 90% of lighting electricity bills, purely based on the savings made by the reduced amount of power required to run them. Therefore if you take the example of a standard 50Watt halogen light bulb and replace it with a 5Watt LED, it is easy to calculate that the LED is 10 times cheaper to run.

However the savings do not stop there. Clearly LED lights are more expensive to buy but they have to be changed rarely and therefore once you have committed to the capital outlay of LED lighting you no longer have keep buying replacement bulbs as you do with conventional lighting. This is particularly relevant to householders and even more so hotels, factories and restaurants where in some cases lights are left running for 24hours daily.

The expected pay back time for the capital costs of buying the LED’s is normally around 6-12 months in a domestic house and as quick as 1-2 months in locations like hotel corridors, where they are continuously used. For hotels, restaurants, factories and offices there are still further savings as the services of an electrician, or facilities management team to monitor and replace lamps on an on going basis is reduced considerably if not negated.