The advantages of LED lighting for commercial buildings

What’s all the buzz (really) about?

In recent years, the adoption of Light Emitting Diode (LED) lighting has gained substantial traction in commercial buildings, displacing traditional lighting solutions such as incandescent, fluorescent, compact fluorescent light (CFL), and halogen. Research shows an estimated 5.9 billion commercial buildings in the U.S. are currently using LED lighting. Looking forward, the LED market is expected to grow to almost $100 billion U.S. dollars and expected to make up 87% of lighting sources by 2030.¹

These and other industry statistics show us that commercial facilities are in a great position to upgrade to LED fixtures for long-term efficiency, performance and above all cost savings.

LEDs: More than 80% savings

Can your company really control its lighting bills? The short answer is yes. Let’s take a quick look at electric lighting expenses. Suppose a commercial building contains 1,000, 65-watt incandescent bulbs turned on 24 hours a day. Using the U.S. average retail electric price of about 10¢ per kilowatt hour, the monthly lighting bill for this company would be $4,680. If the same facility replaced all its incandescent lights with 1,000 11-watt LED bulbs, its monthly lighting bill would be $794.² That’s 83% lower in utility fees alone (see table below).

Distinguishing LED features and benefits

LED lighting is becoming increasingly common in streetlights, parking garage lighting, walkway and other outdoor area lighting, refrigerated case lighting, modular lighting, and task lighting. Let’s take a look at how LEDs are different from traditional lighting types such as incandescent, fluorescent, and CFL. Lighting technology built upon a light emitting diode is nearly everything an incandescent is not, in both form and function. Key distinguishing technical features and related advantages of LED lighting include:

• Light Source: When assessing LED and incandescent lightbulbs, the leading difference between the two is how they emit light. LEDs contain semi-conductive material that allows a current to pass through electrodes, emitting visible light. Alternatively, incandescent and CFL bulbs rely on electricity to emit light.
• Direction: LEDs emit light in a specific direction, as opposed to the broad illumination of incandescent lights, thus reducing the need for reflectors and diffusers. This feature makes them more efficient for uses such as recessed downlights and task lighting. With incandescent lights, more than half of the light may never leave the fixture or conversely, without diffusers, their broad illumination feature is not as effective for certain indoor uses such as desktop and task lighting.
• Energy efficiency: LEDs emit very little heat compared to CFL and incandescent bulbs, which release between 80% and 90% of their energy as heat.ⁱⁱⁱ In addition to being less energy efficient, the warm color and light source work for colder months but can make hot months uncomfortable. The extra heat may require air conditioning to cool rooms in the summer months, which is costly for both the bottom line and environment.
• Lifespan: A good-quality LED bulb can last three to five times longer than a CFL, and 30 times longer than an incandescent bulb.^iv “Can” is the operative word; the endurance of an LED bulb depends on the electricity source it’s plugged into.

The truth about LED longevity

LEDs boast impressive longevity, with some chips lasting close to 100,000 hours under optimal conditions. However, the complexity of LED bulbs, which require Direct Current (DC) power in an Alternating Current (AC) electrical system, poses a challenge. Each “device” necessitates an AC-to-DC converter (or driver), which often operates at as low as 50% efficiency. (NOTE: Most electronic devices in your home, such as computers and phones, use DC power).^v

Manufacturers, prioritizing cost over longevity, frequently opt for less efficient converters, leading to premature failures. This inefficiency generates heat, accelerating degradation of the material components and diminishing LED brightness over time. Consequently, the bulbs become increasingly inefficient until the converter fails entirely. This underscores the trade-off between cost and durability in LED lighting technology, which in turn impedes two common business goals: reducing utility costs and increasing overall energy efficiency.

Power distribution source: The better lever for LED success

One solution would be to replace individual AC drivers with DC drivers. But with an average of 1,000 bulbs per commercial building, the better route for these organizations is to replace the DC power distribution source. A DC microgrid, for instance, creates a single, localized and highly efficient (up to 99%) conversion from AC to DC. What’s more, DC power can then be distributed not only to LED lights but to all the devices that require DC power. On average, potential savings could be 20% on lighting power bills and LED lights could last up to the full chip lifetime of 100,000 hours, compared to 50,000–60,000 hours for LED lights using individual AC/DC power converters, and 750–2,000 hours for incandescent lights.^vi

People- and purpose-driven drivers

• Quality of light: LED lighting provides better-quality light with higher color rendering index (CRI), which improves visibility and color perception. It creates a more natural, accurate output of light. This enhances the overall aesthetics of commercial spaces and contributes to a more comfortable and productive environment for occupants.
• Environmental impact: Unlike fluorescent and CFL bulbs, LED lighting produces fewer greenhouse gas emissions and contains no hazardous materials such as mercury. A study by the Environmental Protection Agency (EPA) indicates that widespread adoption of LED lighting could lead to substantial reductions in carbon dioxide emissions. And because LED lights contain no toxic materials, they are recyclable.

• Physiological benefits: The adoption of LED lighting in commercial buildings has positively impacted occupants' well-being and productivity. Studies have shown that LED lighting mimics natural daylight more effectively than traditional lighting sources, leading to increased alertness and reduced fatigue among individuals working in such environments.