Lighting Commercial Spaces 101. An Introduction to LED and Lighting Controls

Size: px
Start display at page:

Download "Lighting Commercial Spaces 101. An Introduction to LED and Lighting Controls"

Transcription

1 Lighting Commercial Spaces 101 An Introduction to LED and Lighting Controls 1

2 Free technology Smart Networked Thermostats Free equipment and installation Centralized Management of Heating and Cooling Equipment Monitor & control from a centralized web portal Typical 10% heating and cooling energy savings Must participate in limited number of Community Energy Events

3 Participation requirements Must participate in 15 community energy events or 75% of all events, which ever is less At least 75% of devices have to play to get credit for event Events are 2-hours and held 1pm -7pm (typically 3pm-5pm) South 1 June September 30 No events the day before or on holidays 2 event max per week Facility can t have a Energy Management System Prefer 5 or more thermostats

4 SolarGenerations 4

5 SolarGenerations incentives Expected Performance- Based Buydown Performance-Based Incentive Up to 25 kw size 25 kw 500 kw size Public, Low Income, Non-profit $490 per kilowatt $ per kwh Residential, Commercial, Industrial $245 per kilowatt $ per kwh 5

6 SolarGenerations offering Continuously open Eligible for system size up to 500 kw Incentives are paid up front for small systems (EPBB) and over time for larger systems (PBI) 6

7 Agenda The importance of lighting efficiency Industry snapshot Fundamentals of lighting Terms and design basics LED A brief overview of the technology and savings! Questions 7

8 Learning objectives To show that lighting is an effective way to increase energy efficiency To better understand the common terms used in the lighting industry Learn the advantages of LED over other light sources How to make a better business case for LEDs 8

9 What is energy efficiency? 9

10 Lighting efficiency snapshot NOTE 2016 DATA!!! 10

11 Who s using the energy? NOTE 2016 DATA!!! 11

12 Typical building lighting loads Lighting is 50% of typical non-food retail electric consumption Non-Food Retailer 17% of typical mid-sized office electric consumption Mid-sized office 10% 25% 17% 50% 19% 40% 39% Lighting HVAC Other Lighting Computer HVAC Other

13 The LED market 13

14 NV Energy incentives Lighting incentives for both New Construction and Retrofit projects Incentives for both indoor and exterior lighting applications Higher incentive amounts for installing LED and lighting controls Program information and applications can be found at: 14

15 Questions? 15

16 Lighting fundamentals 16

17 Fundamentals of lighting design Lumen output Lumen maintenance Illuminance Color rendering Color temp 17

18 Fundamental lighting terms: Lumens Luminous Flux Unit: Lumen (lm) 18

19 Fundamental lighting terms: Illuminance Illuminous Unit: Footcandle (fc) 19

20 Fundamental lighting terms: Illuminance Is a measure of the amount of light that falls on the floor: Measured in foot candles Shows us how useful the light is Measured at the work plane For reference, a full moon on a clear night results in about ½ FC on the ground!

21 Fundamental lighting terms: Color temp A value expressed in Kelvin, describing light s warmth or coolness CCT Correlated color temperature Color temperature applies to the source of the color, not the effect it has on the object s color

22 Fundamental lighting terms: Color temp Circadian rhythm = Our body s clock! 22

23 Fundamental lighting terms: Color temp 23

24 Fundamental lighting terms: Color rendering CRI = Color rendering index The ability of a light source to faithfully reproduce various object s colors Measured on a scale of 0-100

25 Fundamental lighting terms: Lumen maintenance LEDs do not burn out like HID and fluorescent technologies LEDs slowly depreciate like mercury vapor lamps LEDs use special test to determine end of life 25

26 Fundamental lighting terms: The L-70 test Assumes end of useful life after 30% lumen depreciation L-70 test will be different for each fixture LED fixtures must run at least 50,000 hours 26

27 Fundamental lighting terms: Where to find the data? 27

28 Fundamental lighting terms: Where to find the data? 28

29 State energy code: Nevada Uses ASHRAE LPD of less than 1w/ft2 Means LED can have a real impact We cover this more in sample project 29

30 Basics of LED technology and economics 30

31 What makes LEDs better? Lower Costs Lower Maintenance LED Environmental Controllable 31

32 Lower costs Higher levels of efficacy 80% energy savings vs. incandescent 50% energy savings vs. florescent & HID 32

33 Environmentally friendly LEDs do not contain mercury! 33

34 LED distributions are controllable Controllable light patterns LED optics 34

35 LED electrical loads are controllable Dimming out of the box Extends life of fixture / lamp Saves energy More personal control over private spaces Automation of shared spaces 35

36 Reduced maintenance cost 36

37 Non-energy benefits Reduced maintenance cost Increased convenience Lower scrap rates Improved process control Increased worker productivity Access to real time occupancy data Improved indoor environment Asset tracking Enhanced safety Improved space utilization Reduced noise Geolocation/positioning 37

38 Sample project 38

39 Sample project with NVE incentive What we need to know What we can produce Number of existing fixtures Simple payback Input wattage of existing fixtures Existing Illuminance and LPD Number of new fixtures Input wattage of new fixtures Simple ROI Net present value (NPV) Internal rate of return (IRR) New Illuminance and LPD Cost of new fixture Cost of electricity (kwh) Run hours per day Run days per year Cost to borrow capital (to calculate NPV) Utility incentive 39

40 Sample project data: Static data Cost of electricity: 8.83 kwh Run hours per day: 16 Run days per year: 260 Total run hours: 16hrs/day x 260 days = 4,160 hours/year Incentive: $0.30/w reduced Cost of capital: 7.5% 40

41 Sample project data: Existing lighting Number of existing fixtures: 10 Input wattage of existing fixtures: 110w each Illuminance of 36 workplane (2.5 ) LPD =.7w/ft2 41

42 Sample project data: New lighting Number of retrofit fixtures: 10 Input wattage of fixtures: 50 Fixture cost: $100 each Illuminance of 36 workplane (2.5 ) LPD =.3w/ft2 42

43 Step 1: Determine current operating cost Number of fixtures (10) x input wattage of fixture (110) = 1100W Total wattage draw (1100w) x run hours per day (16) = 17,600Wh/day Total watts/day (17,600) / 1000 (kwh) = 17.6 kwh/day kwh per day x days operated per year = 4,576 kwh/year Yearly kwh usage (4,576) x cost of electricity ($.0883) = $404/year 43

44 Step 2: Determine new operating cost Number of fixtures (10) x input wattage per fixture (50) = 500W Total wattage draw (500) x run hours per day (16) = 800Wh/day Total wattage used per day (800) / 1,000 = 8 kwh per day kwh per day (8) x number of days per year (260) = 2080 yearly kwh usage Yearly kwh usage (2,080) x cost of electricity ($.0883) = $184/year 44

45 Step 3: Determine cost of retrofit Number of fixtures (10) x cost of fixture per each ($100) = $1,000 Note: Most projects will have a labor cost. Our simple example is assuming installation occurs by on-staff maintenance. 45

46 Step 4: Determine the incentive! Take the existing wattage (1100) the new wattage (500) = 600w Multiply the reduced (600) by $.30 = $180 incentive 46

47 Step 5: Determine the project payback Cost of existing system annual electricity ($404) - cost of new system annual electricity ($184) = $220 energy savings per year Subtract the utility incentive ($180) from the project cost ($1,000) = $820 net cost Total net cost of project $ (820) / energy savings per year $ (220) = 3.7 years 47

48 Step 6: Determine the project ROI Total energy savings ($220) / Net total project cost ($820) = 0.27 ROI ROI (0.27) x 100 = 27% ROI 48

49 Step 7.0: Evaluate your investment Co = Initial investment cost C = Energy savings per year r = Cost of capital t = Time 49

50 Step 7.1: Determining our inputs Co = ($820) Cost of retrofit C = ($220) energy savings per year r = 7.5 % t = est. life (50,000/hr) / run hours per year (4,160) = 12 years 50

51 Step 7.2: Calculating NPV in Excel Cash flow for year 1 will always be negative represents sum of investment ($220 savings - $820 net total cost) Years 2-12 are the projects energy savings The NPV equation in Excel is setup as: =NPV(Rate, Value of cash flow) Setup a table of cash flows by year Setup a cell for cost of capital Highlight cost of capital cell for rate, and then drag in values for cash flows over life of project NPV = $

52 Final results Energy reduction: 54% 4,576 kwh 2080 kwh= / 4,576 =.54 LPD reduction: 57%.7-.3 =.4.4/.7 =.57 Lighting system is 70% better than code (ASHRAE ) 3.7 year payback 27% ROI $ NPV (12 years at 7.5% discount rate) Incentive covered about 20% of the project s cost 52

53 Any Questions?

54 THANK YOU! Kevin Brock, PE