A Shifting Energy Market – LED, Renewables Filling the Gap
Originally Published in August 2017 issue of MANN Management:
A new day has dawned in the energy market, as supplies are driving costs down and interest in alternative resources, including renewables, continues to grow. And as nuclear plants are under pressure from the public and energy commissions, other sources, including natural gas, solar and LED lighting, are filling the void.
In Westchester County, the announcement of the plan to close the nuclear plant in Croton has spurred further investment in new energy products and services. The continuation of energy incentives and infrastructure investments in New York State will further fuel this expansion, leading to more clean energy jobs and a renewed interest in new energy products and services from consumers and businesses.
LED Lights the Way
According to a recent industry report, the market penetration rate for LED lighting will surpass 50 percent by the end of 2017. Across a wide spectrum of industries and markets, businesses have continued to move to LED for a variety of reasons that have been well documented. From energy cost savings to the benefits of reducing labor costs, improving controls and management and reducing their carbon footprints, many commercial building owners are already reaping the rewards and generating a positive ROI.
However, despite all the media coverage and marketing that praise the benefits of LED, many businesses and consumers have not yet made the shift.
For commercial property owners, there is a cost for them to delay the inevitable, as LED lights are projected to become the prevailing industry standard within the next three years.
This chart demonstrates the lost opportunity to save money using a model based on a hotel and their current cost for lighting.
For consumers, shifting from standard bulbs to LED can generate savings that are equally dramatic, as the price and quality of LED offers a tremendous ROI.
Despite the myriad of benefits from switching from incandescent to LED lights, only 36 percent of consumers know about the benefits of these high-efficiency bulbs.
A recent cost analysis based on a price survey by the Consumer Federation of America (CFA) found the typical American family uses at least 20 indoor light bulbs throughout their home.
As LED bulbs have dropped in price by 85 percent in recent years, and the longer shelf life of LED bulbs makes up for the extra expense with savings on your energy bill, more consumers are noticing. And with recent advances, consumers can now choose direct light or omnidirectional bulbs to illuminate an entire room.
LED By the Numbers- NY Metro
With increasing awareness of the cost benefits and innovations in LED lighting, we are seeing a significant spike in interest from commercial customers and homeowners in the NY metro area.
As we have finally reached the tipping point in this hyper-growth market, the savings generated from the switch to LED lights will be dramatic. With over 5.2M households, assuming the current market penetration for LED is 52 percent, if the remaining households switch, the savings will total over $270M in the next 10 years.
And for businesses, the savings will be even greater, as average savings for outdoor/parking areas alone for an average commercial lot could result in energy cost savings of over $100K over the lifetime of the new bulbs; reduced maintenance costs; increased controls and energy management projections; enhanced security; and instant illumination.
We are seeing tremendous demand from every major industry and market here in the NY metro region from hospitality, retail, manufacturing, athletic facilities, the education market and multitenant building owners who are looking to improve their margins.
Are you looking to generate more light, heat and a better ROI from your energy plan? Call Original Energy today for a no cost audit and review of your lighting and other energy services.