Colorado Real Estate Journal - April 20, 2016
Lighting can account for 25 percent of all utility usage for building owners and operators today. Upgrading traditional systems to more energy-efficient lighting can not only help reduce energy consumption but also provide a significant costs savings on a daily basis. Whether you are upgrading lighting at an existing space or building new construction, moving to LED lighting is a smart way to save, operate more efficiently, reduce the impact on the environment and increase your investment in human capital. Energy-efficient lighting upgrades carry an average return on investment of 45 percent, typically representing the single-biggest return possible on a single project, and easily justify their upfront cost. In existing buildings, lighting systems can be easily retrofitted to accommodate modern LED lighting with an upfront investment and cost savings throughout the building’s life cycle. Retrofitting takes advantage of existing electrical components and infrastructure, and can help improve building safety. As retrofits lower the electrical load in a building, there is less strain on air-conditioning, ventilation and refrigeration systems, reducing the occurrence of blown outlets or overheated fuses. Developing an overall lighting and efficiency plan for a commercial space is key when modernizing to LED systems. Consider incorporating dimmers, timers and motion-activated sensors to reduce energy usage when certain spaces are not occupied. These intelligent additions can significantly lower monthly energy bills and contribute to an overall reduction in building energy use. Creating a custom lighting plan for each room or area of a building can dramatically increase occupant comfort and productivity. Updated lighting systems now include reduced flicker, increased light output and improved color and consistency, all of which have been proven to positively impact occupant satisfaction levels. While any significant lighting project will carry an initial price tag, new lighting technologies typically pay for themselves in energy savings within the first few years (and through certain LED lighting companies, immediately). For business owners, operators and developers who don’t want to assume a large cash expenditure in this area, financing new lighting systems has become an increasingly popular option due to specialized rates and flexible leasing terms available. Lighting retrofits are commonly eligible for numerous state and federal utility rebates and tax incentives offered to sustainable lighting projects for nonresidential buildings. Sustainability programs provide incentives to commercial property owners using qualifying energy-efficient lighting technologies, for both new construction and renovation projects. Teamed with Ecosystems Group Inc., we recently assisted The Carillon at Boulder Creek with an LED lighting package that is projected to save the retirement community over $42,000 per year with an annual energy savings of over 333,500 kilowatt-hours. The team employed rebates and incentives that paid for over 35 percent of the project costs. The combination of LED lighting technology, modern energy-saving features and tax rebates can make the cost of a lighting project financially achievable or even neutralize the cost. Financing a lighting upgrade or new system allows commercial building owners and business owners to get the equipment they need to operate more efficiently without a large capital expenditure.