A new report from the Department of Energy shows that LED lighting saved U.S. businesses $1.4 billion in 2014—with a potential $50 billion annual savings to come. To share in these savings—and to gain a real competitive advantage—Consumer Energy Solutions urges businesses to make the change to LED as soon as possible.
(Tampa Bay, FL) August 19, 2015—A recent report from the U.S. Department of Energy finds that light-emitting diode-based (LED) lighting was responsible for 143 trillion British Thermal Units in reduced U.S. energy consumption in 2014, resulting in a savings equivalent to $1.4 billion annually in energy cost. Moreover, while adoption of LED lighting is growing across all lighting applications, overall market shares remain in the low single digits, leaving substantial headroom to increase market penetration and related energy savings. The new analysis indicates that from 2012 to 2014, LED market penetration climbed to 3% overall, versus less than 1% in 2012.1
Patrick Clouden, CEO of Consumer Energy Solutions, Inc. (CES), one of the nation’s foremost full-service energy consulting companies, notes that for most businesses, lighting is a significant cost factor. For more than a third of all small businesses, in fact, energy costs are among the three largest areas of business expense.2 “Given the market penetration figures in the new DOE report,” says Clouden, “and our own experience as a pioneer in this area, we can see that it will still be some years before LED lighting becomes the norm. In the meantime, businesses of virtually any kind—particularly those in high-energy-consumption sectors—are in a position to give themselves a real competitive advantage by adopting LED lighting as soon as possible.”
While LED conversion may not happen overnight, it is clearly, Clouden notes, the wave of the future. According to a report from McKinsey and Company, the significant differences between LED and other lighting technologies will lead to a fundamental disruption of the lighting industry along the entire value chain. McKinsey projects that the global LED lighting market will grow from €7 billion ($7.78 billion) in 2010 to €40 billion in 2016—a compound annual growth rate of 34%. By 2020, the LED lighting market will amount to almost €65 billion ($72 billion), representing close to 60% of the total lighting market.3
This industry transformation is being driven by the compelling economics of LED lighting. The Department of Energy has calculated what it calls the “overnight potential”—the amount of annual energy consumption that could be saved by an immediate change to LED—in a number of lighting applications. By far the greatest potential, says DOE, lies in two commercial applications, linear fixture lighting (the type of lighting now largely provided by fluorescent tubes) and low-bay/high-bay lighting. (Low-bay lighting is designed for spaces with ceilings 15 to 20 feet in height, high-bay lighting for spaces with 20- to 40-foot ceilings.) The overnight potential for these categories—the annual savings the U.S. economy would start to experience tomorrow, if 100% of this lighting were converted to LED—is $12 billion for low-bay/high-bay and $18 billion for linear fixture lighting, for a total of $30 billion, 60% of DOE’s total projected overnight savings potential.
“The enormous utility savings from upgrading to LED,” says Clouden, “are based on a reduction in wattage. The most common four-foot fluorescent tube is rated at 32 watts and, with the most common ballast, actually operates at 33 watts. The best replacement LED tube is rated at 18 watts, providing a greater than 40% savings in energy use per bulb. In addition, LED bulbs and tubes have a much longer life expectancy than traditional lighting, which greatly reduces maintenance and replacement costs.”
CES encourages businesses nationwide to take advantage of these potential savings as soon as possible. For those ready to make the change to LED, CES recommends they begin by switching out the most heavily used lights first. CES particularly recommends tackling outdoor lights, which can stay on for 12 hours at a stretch.
For more information about CES and its LED lighting services, visit www.consumerenergysolutions.com.
About Consumer Energy Solutions, Inc.:
Headquartered in Clearwater, FL, Consumer Energy Solutions, Inc. (CES) is one of the nation’s foremost full-service energy consulting companies, with over two million residential and 300,000 commercial customers across the United States and Canada, including many Fortune 500 companies. Founded in 1999 by Patrick J. Clouden, CES transitioned in 2004 from selling primarily to residential customers to selling primarily to businesses. The company’s long-standing relationships with the largest independent energy suppliers in the U.S., coupled with its unparalleled knowledge of the industry, give CES customers access to the most competitive electricity and natural gas rates available in their area. CES is dedicated to educating its customers about the choices available to them as energy consumers, and to helping them, in a volatile energy market, to balance short-term savings against long-term risk. The company’s mission is to assist its commercial clients in better managing their energy costs so as to add to their bottom line. CES is an industry leader in providing its clients with effective strategies and solutions to reduce energy costs. References are available upon request. For more information, visit www.consumerenergysolutions.com.
1. “Adoption of Light-Emitting Diodes in Common Lighting Applications,” U.S. Department of Energy, July 2015. energy.gov/eere/ssl/led-adoption-report
2. “Getting Your Business Energy Efficient Before the Holidays,” Small Business Trends, October 29, 2014. smallbiztrends.com/2014/10/getting-your-business-energy-efficient.html/print/
3. Peters, Laura, “Lighting market report predicts strong growth for LED lighting,” LEDs Magazine, September 2011. ledsmagazine.com/articles/print/volume-8/issue-9/features/lighting-market-report-predicts-strong-growth-for-led-lighting-magazine.html